Fdi in India Rules and Effects

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Importance of Foreign Investment

Investing in a country by individuals and

organizations from other countries is known as

international investment. Economic

development depends on it. Growing economies

like India and China have high populations,

making economic growth the only sustainable

means of raising living standards. As more

inputs are brought into the production process,

investment advances economic growth.

In the current international economic set

up where countries progress towards

globalization, foreign capital is indispensable

and caters to the large requirements of capital

for the economic development. This form of

capital flows are usually welcomed by

developing countries for the reason that they

add to the total investible resources

country. It also acts as a vehicle for the transfer

of technology and management. In these days

technology is very much required for the rapid

economic development. Foreign investment is

becoming more important in developing

countries.