issn: 2278-6236 foreign direct investment in india - Garph.co.uk
issn: 2278-6236 foreign direct investment in india - Garph.co.uk
issn: 2278-6236 foreign direct investment in india - Garph.co.uk
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International Journal of Advanced Research <strong>in</strong><br />
Management and Social Sciences ISSN: <strong>2278</strong>-<strong>6236</strong><br />
The above chats shows that the Cumulative FDI from the year 2002 – 2007 and also FDI by<br />
Sectors like Insurance Mach<strong>in</strong>e eng<strong>in</strong>eer<strong>in</strong>g, Transport, Good Industry, Domestic trade,<br />
Metallurgy and others <strong>in</strong> 2006.<br />
CONCLUSION<br />
Thus from the above we <strong>co</strong>nclude that FDI can be a cross border <strong><strong>in</strong>vestment</strong>, where <strong>foreign</strong><br />
assets are <strong>in</strong>vested <strong>in</strong>to the organizations of the domestic market exclud<strong>in</strong>g the <strong><strong>in</strong>vestment</strong><br />
<strong>in</strong> stock. It br<strong>in</strong>gs private funds from overseas <strong>in</strong>to products or services. The domestic<br />
<strong>co</strong>mpany <strong>in</strong> which <strong>foreign</strong> currency is <strong>in</strong>vested is usually be<strong>in</strong>g <strong>co</strong>ntrolled by the <strong>in</strong>vest<strong>in</strong>g<br />
<strong>foreign</strong> <strong>co</strong>mpany. Eg. An American <strong>co</strong>mpany tak<strong>in</strong>g major stake <strong>in</strong> a <strong>co</strong>mpany <strong>in</strong> India. Their<br />
ROI is based on the performance of the project. In the past decades, FDI was <strong>co</strong>ncerned<br />
only with highly <strong>in</strong>dustrialized <strong>co</strong>untries. US was the world’s largest recipient of FDI dur<strong>in</strong>g<br />
2006 with an <strong><strong>in</strong>vestment</strong> of 184 million from OECD (Organization for E<strong>co</strong>nomic Co-operation<br />
and Development) <strong>co</strong>untries. France, Greece, Iceland, Poland, Slovak Republic, Switzerland<br />
and Turkey also have a positive re<strong>co</strong>rd <strong>in</strong> FDI <strong><strong>in</strong>vestment</strong>s. Now, dur<strong>in</strong>g the <strong>co</strong>urse of time,<br />
FDI has be<strong>co</strong>me a vital part <strong>in</strong> every <strong>co</strong>untry more particularly with the develop<strong>in</strong>g<br />
<strong>co</strong>untries. Availability of cheap labor, Un<strong>in</strong>terrupted availability of raw material, Less<br />
production <strong>co</strong>st <strong>co</strong>mpared with other developed <strong>co</strong>untries, Quick and easy market<br />
penetration are the reasons for that.<br />
REFERENCES<br />
1. Altomonte, C., and Bonassi, C., (2004), FDI, International Outsourc<strong>in</strong>g and L<strong>in</strong>kages,<br />
CESPRI Work<strong>in</strong>g Paper, Centre for Research on Innovation and Internationalization<br />
Processes, Universita’ Boc<strong>co</strong>ni, Milano, Italy.<br />
2. Antras, P. (2003), Firms, <strong>co</strong>ntracts, and trade structure, Quarterly Journal of<br />
E<strong>co</strong>nomics 118, 1375-1418.<br />
Vol. 2 | No. 5 | May 2013 www.garph.<strong>co</strong>.<strong>uk</strong> IJARMSS | 244