Foreign Direct Investment came to be popular aspects of the economy of a country mostly after the World War II. At that time it was the United States of America that enjoyed a global superiority in this realm. However, with time things changed for the better and there has been significant growth in this sector resulting in strengthening the economy of numerous countries of the world.
The salient features of the foreign direct investment have been discussed below for your perusal:
- Depending on the several fundamentals and restrictions imposed upon the FDI, it can be broadly categorized into Outward foreign direct investment and Inward foreign direct investment.
- While the government covers for all risks associated with the outward FDI, the inward FDI is dependent on several factors like economic conditions - tax breaks, interest loans, restrictions etc
Foreign Direct Investment in India has played an instrumental role in boosting the financial stability of the nation. It assured of great developmental measures in several areas of the country that needed special focus and this indeed resulted in the progress of those sectors and is still on the way for betterment. Electricity, roads and highways and a few other sectors like financial services etc are what FDI in India is concentrating on.
With the government limiting the economic restrictions and setting up a favorable ambiance for foreign investors, Foreign Direct Investment in India will definitely attract more investors to the country that will bring further result in its growth and development.
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