Role of Foreign Direct Investments in Indian Manufacturing Sector
Author : Dr. Umesh H Arahunasi and Mudukappa U Sunagar
Abstract :
In India, although the agriculture is the main occupation, the development of the country is depended upon the industrialisation. In the present global competition, every industry needs to search for the new ventures in order to be in the race. Manufacturing is emerging as an integral pillar in the country’s economic growth. Foreign Direct Investment is one of the main sources to supplement domestic capital wherein individuals, enterprises and corporates outside the country invest in India. In the last ten years, there is a significant increase in Foreign Direct Investment into the country in various forms and into various sectors of business. In the present study, the profile of manufacturing sector, FDI in manufacturing sector and the relationship between FDI in manufacturing sector and its contribution to the national GDP have been focussed. Finally, the study observes that FDI in manufacturing sector is a significant factor influencing the economic growth in India. It provides a sound base for economic growth and development by enhancing the financial position of the country.
Keywords :
GDP, FDI, economy, manufacturing
