IJSRP, Volume 2, Issue 12, December 2012 Edition [ISSN 2250-3153]
Srinu Madem, Sandeep Gudla, K Bhaskara Rao
With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy especially the services sector. Besides, it also marks the advent of the real integration of the Indian economy into the global economy. India has been attracting foreign direct investment especially during post reforms period. The sectors like telecommunication, construction activities and computer software and hardware have been the major sectors for FDI inflows in India. The Indian economy as a whole, we find that FDI stocks and output are Co-integrated in the long run. FDI is unlikely to work wonders if only remaining regulations were relaxed and still more industries opened up to FDI. Our present focus is on the FDI trends and consequences during the last decade in India. We also study the effects of FDI investment across various sectors during the same period.