Fdi in India Rules and Effects

Importance of Foreign Investment
Investing in a country by individuals and
organizations from other countries is known as
international investment. Economic
development depends on it. Growing economies
like India and China have high populations,
making economic growth the only sustainable
means of raising living standards. As more
inputs are brought into the production process,
investment advances economic growth.
In the current international economic set
up where countries progress towards
globalization, foreign capital is indispensable
and caters to the large requirements of capital
for the economic development. This form of
capital flows are usually welcomed by
developing countries for the reason that they
add to the total investible resources
country. It also acts as a vehicle for the transfer
of technology and management. In these days
technology is very much required for the rapid
economic development. Foreign investment is
becoming more important in developing
countries.