Abstract:
FDI Inflows in India During 2005- 2006 has registered significant growth in comparison to the previous year. FDI Inflows in India During 2005- 2006 has increased to such an extent that the country has ranked 4th among all the recipients of foreign direct investment in 2006. India has also helped in increasing the total inflow of foreign direct investment in the region of South Asia by around 126% in 2006.
Advantages of foreign direct investment in India:
The advantage of increased flow of Foreign direct investment in India is that, it has helped in the economic development of the country.
Further the various advantages of FDI in India are that it has helped in the transfer of technology, raising the level of production, developing the infrastructure, and generating opportunities for employment in the country.
Amount of FDI inflows in India during 2005- 2006:
The amount of FDI Inflows in India During 2005- 2006, that included, equity capital, came to US$ 5.5 billion, which is an increase of around 72% in comparison with the previous year. The amount of FDI Inflows in India During 2005- 2006 which included, reinvested capital, equity capital, and all other capital, came to over US$ 7.7 billion, which is an increase of more than 37% over 2004- 2005. India ranked 4th among all the recipients of foreign direct investment during 2005- 2006 and it was also instrumental in increasing the flow of foreign direct investment to South Asia by around 126% which amounted to about US$ 22 billion in 2006.
Various sectors in India that attracted FDI during 2005- 2006 are:
- Telecommunications
- Food processing industries
- Transportation industry
- Pharmaceuticals and drugs
- Metallurgical industries
- Services sector
- Electrical equipments
- Fuels
- Chemicals
- Gypsum and cement products
Countries contributing to FDI inflows in India during 2005- 2006 are:
- USA
- UK
- Mauritius
- Singapore
- Switzerland
- Germany
- France
- Japan
- Netherlands
- South Korea
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