• DR RAVI B
• MOHAMMADRAFI SONNAD

FDI is an important source, a cradle of development and an essential component in the growth strategy of both developed and developing countries and hence the policies are designed and framed in such a manner so as to stimulate inward FDI. It is a major source of finance from foreign countries which means that countries with meagre amounts of capital can attract finance influx from other wealthier countries. FDI has been one of the crucial player in China's exponential economic growth. It creates a lucrative/profitable situation for both - the host and the home countries. It promotes an open business climate, and helps in building advanced technologies and promotes advanced employee training programs, besides helping Government revenue to multiply. FDI inflow in the last two and a half decades, stimulated by globalization and liberalization of the Indian economy has played a complementary role in bridging the gap and filling the massive lag between domestic investments and saving. It is a preferred source of funds from foreign countries for the simple reason that they are not debt creating and are not volatile thus reducing the associated risk and their returns depend upon the projects financed by the investor, which means that the amount of return is in control of the investor to a certain degree.

FDI, Source, countries, Growth, Economic factors, influx globalization, liberalization.

"An Analysis of FDI Flow and Trends in India – Country, State and Sector wise from 2000-2017.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 6, page no.775-791, June-2018, Available :http://www.jetir.org/papers/JETIR1806117.pdf

"An Analysis of FDI Flow and Trends in India – Country, State and Sector wise from 2000-2017.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 6, page no. pp775-791, June-2018, Available at : http://www.jetir.org/papers/JETIR1806117.pdf