The role of foreign direct investment in India

Foreign direct investment (FDI) plays a very important role in the economic development of our country. Many development countries like India are facing the deficit of saving. This problem can be solved with the help of foreign direct investment. In this article an analysis is made to find out the merits and demerits of foreign direct investment in India. Oppositions have raised concerns about employment losses, promotion of unhealthy competition among organized small domestic retailers from the market and distortion of culture development. It also Covers brief determinants of foreign direct investment and emphasizes the area of challenges of foreign investors. The growth of FDI inflows and sectoral growth is also analysed.