“STUDY OF FDI AND FII INVESTMENTS IN INDIA AND ITS IMPACT

ON ECONOMY”

The FDI and FII is the process by which the resident of one country (the source
country) acquire the ownership of assets for the purpose of controlling the
production, distribution and other productive activities of a firm in another
country (the host country).
Beginning in 1991 and accelerating rapidly since 2000, India has liberalized its
investment regulations and actively encouraged new foreign investment, a
sharp reversal from decades of discouraging economic integration with the
global economy.
Of the different types of financial inflows, the FDI and foreign institutional
investment (FII)) has played an important role in the process of development
of many economies. Further many developing countries consider FDI and FII
as an important element in their development strategy among the various
forms of foreign assistance.
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Objectives

•To study the kind of relationship between the FDI flows and the
macroeconomic variables like GDP, inflation etc.
•Effect of laws related to foreign currency inward flow
•To study the latest trends in FDI flows in various sectors
•Understanding reasons to keep the cap of flows
•To point out the benefits that foreign companies seek to invest in
India
•To find out what strategic benefits do the foreign investors see
and what do they expect in terms of returns or partnerships
•To find out that is FDI inward flow always advantageous

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•“Negative And Positive Effects Of Foreign Direct Investment” by Asta
Žilinskė ,Kaunas University of Technology, Lithuania (2010)

•“A Causal Relationship between Trade, Foreign Direct Investment and

Economic Growth for India” by G. Jayachandran, Lecturer in School of
Economics, Madurai Kamaraj University (2010)

•“Foreign Direct Investment and Economic Growth: The Growth

Accounting Perspective” by Miao Wang And M. C. Sunny Wong(2009)

•“Foreign Institutional Investments and Real Economic Growth in India: A

Causality Test“ by P. K. Mishra of Siksha O Anusandhan University,
Bhubaneswar, K. B. Das Dept. of A&A Economics, Utkal University,
Bhubaneswar and B. B. Pradhan Siksha O Anusandhan University,
Bhubaneswar (2010)
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•“Impact of Foreign Direct Investment in India” by G Bharathi
Kamath (2008)

•“Foreign Direct Investment in India: A Critical Analysis of FDI from

1991-2005” by Kulwindar Singh, Centre for Civil Society, New Delhi,
Research Internship Programme (2005)

•“Foreign Direct Investment Inflows in India- Opportunities and

Benefits” by Syed Khaja Safiuddin Assistant Professor, Department
of Management and Commerce Maulana Azad National Urdu
University, Gachibowli, Hyderabad, Andhra Pradesh (2010)

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•Data collection
•Causal relationship
•Correlation
•Regression
•Hypothesis Test

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Chapter 1
Introduction
 
Chapter 2
Foreign Investment Regulations of the country
 
Chapter 3
Sectored FDI investments: Trends and Patterns
 
Chapter 4
FDIs and its impact on macroeconomic variables: Analysis
 
Chapter 5
FIIs and its impact on the stock markets: Analysis
 
Chapter 6
Conclusion and Findings 7
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