Determinants of Foreign Direct Investment Inflows to India

Page: 273-275
Ambika Sangwan (Government College for Girls Sector-14 Gurugram, Haryana)

FDI usually represents a long term commitment to host country and contribute significantly to gross fixed capital formation in developing countries. FDI has several advantages over other types of capital flows, in particular its greater stability and the fact that it would not create obligations for the host country. The ongoing process of integration of the world economy has led to a significant change in the attitudes of the host countries with respect to inward foreign direct investment (FDI). The determinants of the FDI are numerous. Whether particular action of investor or government is responsible for increase or decrease in the investment for a given period is treated as determinant. There is not a single variable which would influence investment to rise or fall but it is comprised of a set of variables. It would be very valuable to review the key determinants and factors of FDI based on the theories of international investment. Through this paper an attempt is made to study the determinants which influence the FDI inflow into India and other nations. The study period ranging between 1991and 2018.