A study of the trends of foreign direct investment FDI in India during 1994 2004

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FDI is the measure of recognition of a country/region by international investors for the sake of their investment. FDI flows are usually preferred over other forms of external finance, they are non-debt creating, in-volatile and their returns depend on the performance of the projects financed by the investors. FDI also facilitates international trade and the transfer of knowledge, skills, and technology. In a world of increased competition and rapid technological changes, the complementary and catalyze role of FDI can be very valuable.