scholarly journals The Progress and Achievement of Top Five Services Sectors through the Foreign Direct Investments in India

Foreign Direct Investment (FDI) plays a very important role in the development of the nation. It is very much vital in the case of underdeveloped and developing countries. A typical characteristic of these developing and underdeveloped economies is the fact that these economies do not have the needed level of savings and income in order to meet the required level of investment needed to sustain the growth of the economy. In such cases, foreign direct investment plays an important role in bridging the gap between the available resources or funds and the required resources or funds. It plays an important role in the long-term development of a country not only as a source of capital, but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities. In India, FDI is considered as a developmental tool, which helps in achieving self-reliance in various sectors and in the overall development of the economy. India after liberalizing and globalizing the economy to the outside world in 1991, there was a massive increase in the flow of foreign direct investment. The present paper attempts to analyze the significance of the FDI Inflows in Indian service sector since 1991 and relating the growth of service sector FDI in the generation of employment in terms of skilled and unskilled. The services sector is not only the dominant sector in India’s GDP, but has also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment. India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction.

2019 ◽  
Vol 30 (6) ◽  
pp. 1607-1609
Author(s):  
Feim Brava

Domestic investments are essential to develop of each country, but sometimes insufficient, in most countries that aim for sustainable and long-term growth. Hence, most countries, and Kosovo, have a continuing need for additional capital, which, with adequate institutional policies, can be provided through Foreign Direct Investment (FDI).While in developed countries there are debates about and against FDI (especially about the type of FDI when an investment can be made from domestic capital), in underdeveloped and developing countries there is a consensus on the need for FDI to meet the need for investments that can not be realized through local investment.Several emerging countries and Kosovo have made constant efforts to increase these investments but have faced significant problems in attracting foreign investors. Disadvantaged institutional policies, including monopoly policies and fiscal policies, have been one of the limiting factors.This paper aims at analyzing current policies related to attracting FDI and identifying and analyzing institutional policies that are facilitating FDI, but the main focus will be on current and potential policies that can will negatively impact on FDI withdrawal. At the end of the paper, some conclusions will be drawn based on research on the current situation as well as some recommendations on policies that may advance attracting Foreign Direct Investment (FDI).


2021 ◽  
Vol 9 (47) ◽  
pp. 11469-11476
Author(s):  
R. P. Meena ◽  
Sajjan Kumar

FDI offers a bundle of benefits such as financial and non-financial. FDI is one such source of long term international capital. Service sector is a largest sector of India economy. Since 1991, FDI inflows in India is on an increasing trend. The FDI Inflows in service sector increased from Rs.14803.91 crores during 1991-2000 to Rs.63909.44 crores in 2018-19. It showed positive response. The easiest and cheapest way to increase the capital is foreign direct investment. There is also increase in foreign currency resources. This paper discusses about the trends of FDI equity inflows in service sector in India, to study and analyze the trend of FDI equity inflows in sub-sector of service sector in India and to examine and analysis the relationship between total FDI equity inflows and FDI equity inflows in service sector in India during 2009-10 to 2018-19.


2016 ◽  
Vol 13 (3) ◽  
Author(s):  
Debabrata Sutradhar

In the contemporary globalised economy, service sector attracts the major share of Foreign Direct Investment (FDI) in the world. India being a part of this phenomenon also attracts most of its FDI in the service sector. The present paper highlights the trend in FDI movement in the world in general and India in particular. Further, it reviews the FDI policy in India in the post liberalized period. The growth of FDI in services sector may be attributed to the changing pattern of global FDI and also the liberalization and globalization policies pursued by India. Since 2000, the high inflow of FDI has resulted in the growth of new services viz., financial and non-financial services, telecommunication, computer software and hardware, hotel and tourism, construction activities and real estate. The growth of services sector had led to the growth of export of services from India which now accounts the majority of export from the country.Keywords: FDI, Services sector, Export, Liberalization.


2011 ◽  
Vol 14 (1) ◽  
pp. 5-18
Author(s):  
Janina Witkowska

The subject of this paper is analysis and assessment of foreign direct investment (FDI) as made by transnational corporations in the textile, garment, and leather industry on a world economic scale under conditions of globalization. Significant changes are occurring in the sector and industry structure of global FDI. In terms of the three sectors of the economy, a long-term shift of FDI to the service sector at a cost to investments in manufacturing may be seen. Foreign investments are being made in the textile, garment, and leather industry. They are growing in the long term. However, the dynamics of the FDI streams flowing to this industry is one of the lowest in manufacturing. Over the long term (1990-2007), the share of the textile, garment, and leather industry in global FDI stock decreased from 1.5% to 0.6% in 2007. In spite of the labour-intensive character of this industry, in their bulk, the FDI are destined to the highly developed countries.


In recent years, significant of Foreign Direct Investment has been increasing especially in the developing countries. These countries are trying their level best to attract more and more FDI. Foreign Direct Investment takes place when a company invests directly in the production or marketing of a product in a foreign country.FDI is defined as an investment involving a long term relationship that reflects the long term interest and control of a resident entity in the host country. Industrial investment plays a significant role in the development of a country. Broadly there are two types of foreign investment viz., foreign direct investment and portfolio investment. The developments are easily possible through Foreign Direct Investment (FDI) because it helps to bring close the different economies of the world by investing capital in a country. Capital formation is an important determinant of economic growth. While domestic investments add to the capital stock in an economy, FDI plays a complementary role in overall capital formation and filling up the gap between domestic savings and investment. Foreign investment plays an important role in the long term economic development by augmenting availability of capital, enhancing competitiveness domestic economy through transfer of technology, strengthening infrastructure, raising productivity, generating new employment opportunities and boosting exports. The Government has implemented several reforms in recent years to attract more FDIs. These include improving infrastructure, revising the law on the land acquisition, reforming labour law and rationalizing the process of obtaining environmental clearances. In this article researcher focused on industrial opportunities and challenges in Tamil Nadu for industrial development of the state.


2014 ◽  
Vol 13 (4) ◽  
pp. 1
Author(s):  
Debabrata Sutradhar

In the contemporary globalised economy, service sector attracts the major share of Foreign Direct Investment (FDI) in the world. India being a part of this phenomenon also attracts most of its FDI in the service sector. The present paper highlights the trend in FDI movement in the world in general and India in particular. Further, it reviews the FDI policy in India in the post liberalized period. The growth of FDI in services sector may be attributed to the changing pattern of global FDI and also the liberalization and globalization policies pursued by India. Since 2000, the high inflow of FDI has resulted in the growth of new services viz., financial and non-financial services, telecommunication, computer software and hardware, hotel and tourism, construction activities and real estate. The growth of services sector had led to the growth of export of services from India which now accounts the majority of export from the country.Keywords: FDI, Services sector, Export, Liberalization.


Obiter ◽  
2017 ◽  
Vol 38 (2) ◽  
Author(s):  
Amos Saurombe

The growth of the service sector foreign direct investment (FDI) globally reflects an underlying need for appropriate regulation. As investors look into the African continent for investment opportunities, they need to find a regulated environment that can support their investments and related rights. This includes both intra-Africa FDI flows and investments that emanate out of the continent. The focus of this paper is on the Southern African Development Community (SADC). This paper will show that FDI will be critical for trade liberalization to be realised in the region. The findings of the paper point to the need for an institutional and regulatory framework in order to understand the consequences for investment flows. Where gaps are, appropriate cover needs to be found.


Think India ◽  
2019 ◽  
Vol 22 (2) ◽  
pp. 61-76
Author(s):  
Manu V

This study attempts to review, the growth and performance of service sector in Kerala. The service sector usually covers a wide range activities from the most sophisticated information technology (IT) to simple services provided by the unorganized sector like the services of the plumber, mason, barber etc. National Accounts classification of the services sector incorporates trade, hotels, and restaurants; transport, storage and communication, financing, insurance, real estate, and business services; and community, social and personal services. In World Trade Organization (WTO) and Reserve Bank of India (RBI) classification, construction is also included in services sector.


2015 ◽  
Vol 5 (1) ◽  
pp. 81
Author(s):  
MSc. Nexhat Shkodra ◽  
MSc. Nermin Xhemili ◽  
Dr.Sc. Myrvete Badivuku-Pantina

Economic development is a goal aspired by many countries of the world, Kosovo included. In attaining such goals, many countries face numerous difficulties. Amongst the most often taken paths by various countries is the attraction of foreign direct investments to the country.The term investment includes a wide range of human activities in engaging financial means into one of the areas: immoveable property, bonds and shares, manufacturing and service projects, scientific research, technological development, personnel education, etc.Different from internal investment which is engaged by domestic investors in their own territories, Foreign Direct Investment, the topic of our study, is a form of investment which generates revenues by a company in the country and an affiliate branch outside the investor’s seat. Foreign Direct Investments generate relations through the local company and its branches outside the country. Foreign Direct Investments (FDIs) are considered to be a strength giving life to economic development of a country, and especially the developing countries.They have an important role to play in a long-term development of a country, and not only as a capital source, but also in increasing competitive abilities of the domestic economy, by technological transfers, strengthening infrastructure, increased productivity and generation of new employment opportunities.


2017 ◽  
Vol 14 (2) ◽  
Author(s):  
Sanja Franc

Economic growth, export and foreign direct investment have been an important research subject for many years. The argument about the role of export as one of the main deterministic factors of economic growth has its roots in classical trade theories. Furthermore, according to the neoclassical theory, long-term economic growth is the consequence of an increase in exogenous factors such as increased labor force or technological progress. The export-led growth strategy of a country aims to provide incentives for the export of goods through various economic policy measures. Its goal is to increase the production of goods and services that can compete in the global market, use advanced technology and provide foreign exchange revenue needed to import capital goods. The emergence of new theoretical models that emphasize the importance of endogenous factors for economic growth has enabled the inclusion of foreign direct investment into analysis as one of growth determinants. Free movement of capital in the past was recorded only in a few countries and several sectors, and usually the capital flows followed the trade flows. Today there is a noticeable global trend of proliferation of free movement of capital. What is more, foreign direct investments have gained importance as desirable source of capital, especially in developing countries among which a strong competition for attracting such investments has developed. Foreign direct investments represent a specific form of capital because they imply a long-term interest as well as a certain share of ownership that ensures voting rights and participation in the management of the company. There is a vast literature dealing with the effects of foreign direct investment on the recipient country. It is generally accepted that these effects positively contribute to economic growth and development due to the inflow of fresh capital and spillover effects that depend on the absorption capacity of the recipient country. In conclusion, it is to be expected that liberalization of international trade and export performance, as well as the liberalization of capital movements and the inflow of foreign direct investment have a positive impact on the economic growth of a country. The aim of this paper is to examine the correlation between export, foreign direct investments and economic growth on the example of the Republic of Croatia. The conclusions of the research are of use in adopting appropriate policies and strategies for the growth and development of small open economies such as the Republic of Croatia.


Sign in / Sign up

Export Citation Format

Share Document