FDI In the Indian Economy: Determinants and Impact

The purpose of this study is to provide an analysis of the Foreign Direct Investments in India - the various factors that attract investors to India, the impact that such investment has on the domestic economy and the experience of the multinationals with the overall business environment in the sub-continent. India has undergone remarkable international integration and development over the past few years. It was ranked second as the global business destination in 2005. Moreover the government has been actively pursuing liberalisation with the aim to attract more foreign capital. Thus it becomes necessary to study the impact of such inflows as it has important policy implications