A Study of FDI In India

Abstract

FDI has been one of the most distinguished factors for financial aid and growth for developing countries. The paper examines the present and future status of FDI in India. The methodology used in the paper is divided into two parts: first, determining the effect of FDI (equity inflow) on total FDI inflow through regression analysis, F – Test, and test of auto correlation through Durbin-Watson test, and the second part studies the trend of FDI inflow and forecast of the inflow till 2016 through trend analysis. The paper interprets that the FDI equity inflow is a significant determinant of total FDI inflow in India. The paper provides a composite view of the present status of India in world FDI flow, examines the situation of FDI retailing (single brand and multi brand) in India and determines the advantages and drawbacks of FDI flow on Indian economy.

Key Words: FDI, retailing, sectoral analysis, regression analysis, auto correlation, trend analysis.