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).