Introduction Of A Foreign Direct Investment

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TABLE OF CONTENTS

 INTODUCTION
 ANALYSIS
 FDI SECTORS WITH CAPS
 REASONS FOR LOW FDI IN INDIA
 RECOMMENDATIONS
 CONCLUSION
 REFRENCES

INTRODUCTION
A Foreign Direct Investment is basically an ownership in a business in a country by a totally different country. Foreign Direct Investment (FDI) plays a very important role in the development of a nation. All countries need FDI’s but in the case of underdeveloped or developing nations FDI is one of the most important aspect, as this kind of investment is required to help sustain the growth of the economy. This inturn helps improving the balance of payments and also helps in generating employment in the country. FDI also helps to improve productivity and use the available resourecs to the maximum.
FDI in INDIA : FDI in India plays a very important role. Foreign Investments have been existant since the time East India Company had settled itself in India, however due to non existance of data the same cannot be authenticated by the researchers, The Britishers then invested in business that could be profitable just to them. After Independence foreign investment was considered as a medium to bring in advanced technology and resources that were not available in India. However the gulf war in the early ninteys put India’s economy in serious trouble. That was when the policy was introduced in the year 1991-92 by then the Financial Minister Dr. Manmohan Singh with the help of the world bank as there was
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