JJEM: Special Edition 4 (May 2025)
JJEM: Special Edition 4 (May 2025)
2025-05-31
Foreign Direct Investment Policy in India - A Study
Rachana B S, Dr. Kundan Basavaraj
FDI plays a crucial role in the country's growth and development. When a nation encounters a lack of capital for its overall development, foreign investment is the solution to bridge the gaps between domestic capital and investment. India has become a major global center for FDI, ranking among the top ten FDI destinations, as highlighted in the World Investment Report 2023. The nation has made significant progress in attracting foreign investments through major reductions in corporate taxes and the streamlining of labor regulations. Additionally, FDI serves as a key conduit for technology transfer, connecting advanced economies with developing countries. This transfer is not just a simple exchange of equipment and machinery; it represents the sharing of knowledge, innovative methods, and organizational capabilities that can significantly alter the productivity landscape of the receiving nation. The processes through which technology transfer takes place are complex and often interconnected, incorporating both direct and indirect pathways observable at the firm and industry levels. The current study aims to examine the sectorwise FDI limits in India.
FDI, Capital, Investment