“Role of Fdi & Fii in Indian Economic Growth”

10253 Words Jan 26th, 2012 42 Pages
A

PROJECT REPORT ON

“Role of FDI & FII in Indian Economic Growth”

SUBMITTED TOWARDS PARTIAL FULFILLMENT

OF

POST GRADUADTE DIPLOMA IN MANGEMENT

(Approved by AICTE, Govt. of India)

(Equivalent to MBA)

ACADEMIC SESSION

2008 – 2010

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Under the guidance of : Submitted By:

Dr. Tapan Kumar Nayak Gagan (61)

Associate professor Karun Dev (73)

IMS Ghaziabad Kush Dixit (77)
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Apart from helping create additional economic activity and generating employment, foreign investment also facilitates flow of technology into the country and helps the industry to become more competitive.

The FDI & FII mantra is considered an all-purpose panacea for the ills of the Indian economy and society. It has become routine for our finance ministers to "showcase" India in various international forums and exhort the global captains of industry and commerce to come to India. We here want to know about the far-reaching implications of FDI in our economy and, particularly, how it can stifle economic growth.

Fortunately India's economic growth over the last decade and a half has primarily been driven by savings in the economy, especially by households. Housewives from middle-class homes should be given due credit for this. If we want to grow at 10 per cent and if our capital-output ratio is 3.5, we need investment at 35 per cent and, if our savings rate is 28 per cent, then the gap has to be met by the investment. This is, to start with, spurious since the measurement of the capital-output ratio is not reliable and definitely not applicable to our service sector, which makes up nearly 60 per cent of the economy
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