| Abstrakt: |
India is on a transition from a planned economy to an open market one. The ongoing process of transition (initiated way back in 1991) needs enormous amount of financial resources to carry forward the agenda of transformation. In this respect, the options open for Indian economy namely are - Official Development Assistance (ODA), Loans or commercial borrowings and Foreign Direct Investment. As the domestic saving ratio to GDP is just 24 per cent, India has no option other than to depend on external sources of finance. The convenient and effective option is to invite larger amount of FDI. FDI inflows to Indian economy have become a necessity. Keeping in mind its importance, role and contribution in the process of transformation of Indian economy as a modern or developed economy, the present paper makes an attempt to analyze and suggest how FDI would be an effective medium to promote growth and development of the country and how it can help to attain global competitiveness. |
