Indicators of the Extent of Integration of the Indian Economy In the World Market For Goods and Services

Understanding the Influence of Foreign Direct Investment on the Indian Economy

Abstract

FDI may be defined asan investment involving a lasting interest and control by an investor who is aresident of another economy, other than that of the host economy. In the simplesense, FDI implied that the investor has a significant degree of influence onthe management. Foreign Direct Investments are investments made by residents ofone economy with the objective of establishing a lasting interest in a companylocated in another economy (host economy).