A Critical Analysis of Foreign Direct Investment Inflows in India

AbstractHistorically, India has followed an extremely cautious approach but after economic reforms in 1991, India has liberalized its foreign policy and took series of measures to attract FDI. As per UN report, India is an investment hub after China and USA for major global companies. The present study is based on secondary data and period of the study is from 1991 to 2012. Total FDI inflows have been raised from US $ 133 Millions in 1991-92 to US $ 27841 Millions in the year 2008-09 and the share of direct foreign investment through approvals in equity etc. stood at 65.79% and that of portfolio investment was 34.21%. Projections show that total FDI inflows will be US $ 46098 Millions in 2015-16. Mauritius and Singapore tops in FDI inflows and the FDI inflows in service sector were in highest position. They have positive impact on the related economic indicators on Indian Economy. GOI should attract more FDI through favourable policies and avoid uncertainties