Analytical Study of FDI in India

Author:Preeti Rani* Assistant Professor, Department of Commerce, Govt. (P.G.) College, New Tehri, Uttarakhand, Email address: dr.preetirani@yahoo.com

Abstract:
The present paper tries to study the trends and pattern of FDI in India. The paper also studied that what is the limit of investment in different sectors of the economy and what are the sectors where the investment is banned. Another objective of the study is to analyze the yearly sector-wise investment of FDI in India. The study helps to find out which country has made how much investment during the last five years. For the purpose of study secondary data has been collected from various journals, magazines, and websites particularly annual report of RBI 2011-12. The statistical tools i.e. Mean, Standard Deviation and Kurtosis has been used to analyze the data. The study reveals that that during first two years the investment has increased then it goes down and in 2011-12 it is maximum. The study also reveal that majority of the investment are coming from few countries like Mauritius, Singapore, U.S.A. Japan and Netherland. Bulk of the FDI is concentrated in few sectors like Manufacturing, Construction, Financial services, Real estate and Communication. Despite increase in FDI the variation between the sectors is very high which shows that there is unequal distribution of investment in different sectors. The study also reveals that there are good future prospects from countries from where the investment is low. The study also reveals that since the FDI is concentrated only in few sectors there are good future prospects of FDI in other sector where investment is low.

Keywords:FDI (Foreign Direct Investment), Mean, Standard Deviation, Kurtosis, Playkurtic, Lepokurtic

DOI:

International Journal of Trade & Commerce (Vol: 1 Issue:1)