An Globalized World Burden Of Private Investment Is Increasing Over Foreign Direct Investment Essay

1315 Words6 Pages
Abstract: There is growing consensus among researchers and academicians that in this globalized world the burden of private investment is increasing over Foreign Direct Investment (FDI). Because of a declining trend in public investment the task of capital formation rests over the shoulder of private investment and thus FDI playing a leading role in determining the fate of the economy. The economies receiving more inflow of FDI, are realizing a comparatively high growth and vice-versa. This is also expected to be happen in India. The present paper discusses the relationship between the inflow of FDI and GDP. It has been found that FDI has a positive correlation with GDP. the regression analysis between GDP and FDI of different sectors also supported the same result which shows that FDI inflow in India is playing very important role in determining the size of GDP.
Key Word: Foreign Direct Investment, Sustainable Growth, GDP, Farm Production
Introduction:
The process of planning in India has always been sensitive to the needs of the poor and the plight of excluded from its early days. Government of India sought to solve all the socio-economic problems with the help of rapid and sustained economic growth, because our planners were working with the view that as the size of national income will be high individuals can share more and vice-versa (Hashim, S.R., 2007). Mainly because of this reason economic growth has always been the centre of objectives of India’s Five Year
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