Implication of Economic slowdown On FDI Inflows to Indian Economy

Author(s) : Prof. Prity Sharma, Mithilesh Kumar, Rishi sengupta
ISSN : 974
Year : Aug 2009 | Volume : 3 | Issue : 3

This paper is based on the premises that how global economic slowdown has taken its toll on the foreign investment flows in the country as FDI has declined by a whopping 27.85% during the month of November 2008 this year over the same month a year ago. FDI has been increasing over the past few years in the country. The share of FDI in total investment has more than doubled from 2.55 per cent in 2003-04 to 6.42 percent in 2006-07. But a question that whether the ongoing inflows in India would be affected due to worldwide slowdown, it was difficult to assess the impact. This paper aims at analyzing the implications of economic slowdown on FDI inflow in India. Under the liberalized economic environment, investment decision of investors is based on the macro-economic policy framework, investment climate in the host country, investment policies of the transnational corporation and other commercial considerations.


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