How Foreign Direct Investment can Help India in Eradicating the Problem of Poverty and Unemployment

Author: aMani Gupta*, bR.P. Yadav aShri Venkateshwara University Gajraula, Amroha (U.P.) bS.M. (P.G.) College, Chandausi Dean Faculty of Commerce, M.J.P. Rohilkhand University, Bareilly Email Id: manigupta.sbl@gmail.com

Abstract:
International investment that reflect the objectives of a resident entity in one economy obtaining a lasting interest and control in an enterprise resident in an economy other than that of the foreign direct investor. Realizing the importance of contribution that private foreign capital can make to the economic development, the industrial policy Resolution ushered in major changes to attract foreign investment in India, such a positive and open-door policy of India towards foreign investment and technology transfer has as compared to the earlier policy. The enlarged spheres of Foreign Direct Investment (FDI) entry now include mining, oil exploration, refining and marketing, power generation and telecommunication, insurance, defense, print media, tourist, hotel management and rural development including agriculture. Foreign investments have provided great impetus for growth to Indian economy especially in the post liberalization period. Continuous flow of foreign investments across almost all sectors has proven that foreign investors have faith in growing Indian market. India is the 3rd largest economy of the world in terms of purchasing power parity making it lucrative to investors from all over the World. Though there has been stiff opposition from various quarters on the issue of FDI but the government of India, has been trying hard to do away with the FDI caps for majority of the sectors. There are critical areas like retailing and insurance where there is lot of opposition from local Indian companies.

Keywords:Foreign Direct Investment, Poverty, Employment, GDP, TRIPS

DOI:

International Journal of Trade & Commerce (Vol: 4 Issue:2)