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Foreign Direct Investment and Indian Economy

Globalization and liberalisation brings lots of new innovative products to the world, Foreign Direct Investment is the one among this, also there are number of different forms of FDI is available currently. Foreign Direct Investment is one and only major instrument of attracting International Economic Integration in any economy. It serves as a link between investment and saving. Many developing countries like India, are facing the deficit of savings. This problem can be solved with the help of Foreign Direct Investment. This research paper aims to examine the impact of FDI on the Indian economy, particularly after two decades of economic reforms, and analyzes the challenges to position itself favourably in the global competition for FDI. This paper also tries to find out the scenario and role and Scope of Foreign Direct Investment in India. In this paper we study the effects of Foreign Direct Investment (FDI) with respect to India and its economy. We try to analyze the merits and demerits of FDI upon implementation in the Indian domestic market.