FDI from U.K

Abstract:

FDI from U.K to India has registered significant growth in the last few years due to the many incentives that have been given by the government of India. The increased flow of FDI from U.K to India has helped in giving a major boost to the country's economy.

Foreign direct investment in India:

India has the fifth biggest economy in the world and the country also has such a market that offers very high prospects for earning and growth. These factors have helped to attract huge amounts of foreign direct investment in India.

The total amount of foreign direct investment in India stood at US$ 4881 million in 1995- 1996 and the next year, this figure increased to US$ 6008 million. The industries that have attracted foreign direct investment in India are electrical equipments, information technology, service sector, tourism, metallurgical industries.

Various industries attracting FDI from U.K to India are:

• Information technology
• Telecommunications which includes services of radio paging, basic telephone, and cellular mobile
• Service sector which includes non- financial and financial services
• Power
• Oil and gas

Amount of FDI from U.K to India:

FDI from U.K to India has increased over the years to make U.K rank fourth among all the countries that make investments in India. The flow of FDI from U.K to India has increased over the years due to the several incentives that have been provided by the government of India. The total percentage of FDI from U.K to India came to 5.2% out of the total foreign direct investment in the country between 1991 and 2002. The total amount of FDI from U.K to India stood at ` 3,768.77 crores between 1991 and 2002.

Beneficial results of FDI from U.K to India:

The beneficial results of FDI from U.K to India are that it has helped in creating new opportunities for employment in the country, improved the technology of the industries, and also developed the infrastructure of the country.

Last Updated on 3/18/2011