• Dr. Ratnakar Rana

The concept of Foreign Direct Investment is now a part of India’s economic future but the term remains vague to many, despite the profound effects on the economy. Despite the extensive studies on FDI, there has been little illumination forthcoming and it remains a contentious topic. FDI is an integral part of an open and effective international investment architecture matter for attracting FDI to a large number of developing countries and for reaping the full benefits of FDI for development. Many policy makers and academics contend that FDI can have important positive effects on a host country’s development efforts. In addition to the direct capital financing it supplies, FDI can be a source of valuable technology and know-how while fostering linkages with local firms, which can help jumpstart an economy. FDI eludes definition owing to the presence of many authorities; Organization for Economic Co-operation and Development (OCED). International Bank For Reconstruction And Development (IBRD), International Monetary Fund (IMF), and United Nation Conference on Trade and Development (UNCTAD). All these bodies attempt to illustrate the nature of FDI with certain measuring methodologies. Generally speaking FDI refers to capital inflow from abroad that investment in the production capacity of the economy and are “usually preferred over other forms of external finance between because they are non-volatile and their returns depend on the performance of the projects financed by the investors. FDI also facilitates international trade and transfer of knowledge, skills and technology.” This paper shows that the benefits of FDI vary greatly across sectors by examining the effect of FDI on growth in the service sectors.

FDI, Positive effects, Development efforts, Valuable technology, Performance.

"Role of Foreign Direct Investment in Service Sector", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 4, page no.1301-1304, April-2019, Available :http://www.jetir.org/papers/JETIR1904R90.pdf

"Role of Foreign Direct Investment in Service Sector", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 4, page no. pp1301-1304, April-2019, Available at : http://www.jetir.org/papers/JETIR1904R90.pdf