Thursday 6 March 2014

MBA PROJECT FREE:A STUDY OF FOREIGN DIRECT INVESTMENT AND ITS GROWTH IN INDIA

 ABSTRACT

Foreign direct investment(FDI) in all over the world in general and in India in particular after the opening up of our market with the adoption of the policies namely globalization, privatization and liberalization has no doubt emerged as one of the most significant source and contributor of external inflow of resources and is one of the most crucial contributors to the capital formation despite their share in the world arena still catching up. When we talk about the term FDI we are talking about a bundle of resources that usually flow into a country including besides capital, production technology, global managerial skills, innovative marketing strategies and access to new markets.

             In this project it has been tried to provide a comprehensive picture about the foreign direct investment ranging from its conception as a potent source of investment the world over, its various types, the methodology adopted top FDI countries and agencies engaged and other important aspects.

             A cumulative and an exhaustive study of the over all scenario of FDI in India starting from the introduction of FDI in the country, share of top investing countries, sectors attracting highest FDI flows, sector wise technology transfer and approvals.

             We will also look at the determinants for attracting FDI in the country and also the causes for low flow of FDI and the mechanisms that can be undertaken to make our country attractive enough for investors. This study entirely relies on secondary data collected after a thorough and exhaustive study of various websites, text books, journals, newspapers, magazines and great inputs form various professors and professionals specializing In this area.

             Though the policy is reviewed frequently we lack when compared with countries like china, so it’s high time the government takes steps to further liberalize the economy and streamline and liberalize the policies to make India the most preferred FDI destination in the world.


METHODOLOGY:

This project is entirely based on freelance work done by the student and therefore no organisation has been taken as a base for doing the project. AN exhaustive amount of data available on the internet, from the text books, news papers, and various magazines and suggestions from a few experts in the field has been taken in doing this project.

As this is a free lance project, the data has been entirely collected from secondary sources and therefore its authenticity can be vouched for only by going through the same literature which has been used.


SCOPE OF THE STUDY
as this study is aimed to analyze the trends in the FDI inflows, the main focus is given on the recent trends in the inward FDI inflows, sectors attracting highest FDI, and the share of top investing countries, it covers only equity capital components. The scope is limited to the availability of the secondary data.


LIMITATIONS OF THE STUDY
the study is conducted in a short period, which was not detailed in all aspects.
Non-availability of accurate data to FDI
Data in one secondary source do not match with that of another source.


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