Content area
Full Text
ABSTRACT
India has emerged most favorable foreign investment which results in issues like minimizations of trade barriers, flexible exchange rate etc. It also results in strengthening the external position of the domestic economy. Ever since India has embraced liberal economic policies by opening up its economy in 1991-92 the capital inflows generated by foreign direct investment (FDI) and foreign portfolio investment (FPI) has proved to be indispensable for the cause of propulsion of economic growth of the country. Indian economy is enthralled with a sound and unwavering financial sector ensuing in greater foreign participation as is apparent in continuously rising FDI and Foreign institutional investments. These trends are in the process of introducing comprehensive and far reaching changes to its commercial and corporate regulatory framework. India is in the process of introducing inclusive and far reaching changes to its commercial and corporate regulatory framework. In this regard the present paper is an attempt to explain about the recent issues and challenges in FII in the Indian economy. Here a brief idea has given regarding the various policy changes and regulatory development which have taken place in the field of India's FII dining the post globalization era.
Keywords: Foreign Direct Investment (FDI), Globalization, Foreign Investment, Financial Sector, Indian Economy etc.
INTRODUCTION
'Invest India' is the means to direct investments into the country. There is a call for promoting foreign investments in India in a structured manner and provide quality input and support services to the investors, particularly the SMEs and family-owned overseas enterprises. A growing India offers opportunity across sectors notably infrastructure, pharmacy, automobiles, education and many more in an investor-friendly environment. India is one of the fastest emergent economies in the world and has emerged as a key destination for foreign investors in recent years. Economic reforms initiated in 1991 have grown in scope and scale and yielded increasingly salutary dividends. One of them is the steady improvement in India's relative position in the global economy, reflected in New Delhi's growing influence in international institutions (G-8, G-20) and negotiating free trade areas (with ASEAN, EU). Another is the improved efficiency in the economy and adoption of international "best practices" in the production of a range of goods and services. A third outcome is...