The Impact of Foreign Investment on India's Economic Growth: A Deep Dive
Foreign investment plays a pivotal role in shaping the economic landscape of any country, and India is no exception. Over the past few decades, India has witnessed a significant influx of foreign capital, which has contributed to its economic growth and development. This article delves deep into the impact of foreign investment on India 's economy, exploring its benefits, challenges, and the future outlook. 1. Understanding Foreign Investment Foreign investment refers to the inflow of capital from foreign entities into a country's domestic market. It can be broadly categorized into two types: Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI). Foreign Direct Investment (FDI) FDI involves direct investment in business operations or assets in a foreign country. This type of investment typically includes establishing subsidiaries, joint ventures, or acquiring significant stakes in existing companies. FDI is often associated with long-term interests and managem...