Abstract—FDI and trade are often seen as important catalysts for economic growth in the developing countries. FDI is an important vehicle for technology transfer from developed countries to developing countries. Since 1991 the government has focused on liberalization of policies to welcome foreign direct investments. India’s economic reforms way back in 1991 has generated strong interest in foreign investors and turning India into one of the favourite destinations for global FDI flows. The FDI inflows grow at about 20 times since the opening up of the economy to foreign investment. Further, the explosive growth of FDI gives opportunities to Indian industry for technological up-gradation, gaining access to global managerial skills and practices, optimizing utilization of human and natural resources and competing internationally with higher efficiency. These investments have been a key driver for accelerating the economic growth through employment generation, and improved access to managerial expertise, global capital, product markets and distribution network. FDI in India has enabled to achieve a certain degree of financial stability; growth and development to sustain and compete in the global economy. Most importantly FDI is central for India’s integration into global production chains which involves production by MNCs spread across locations all over the world. (Economic Survey 2011-12).

Index Terms—FDI, flows of FDI, determinants of FDI, economic growth

Cite: Supriya Chopra and Satvinder Kaur, "Analysis of FDI Inflows and Outflows in India," Journal of Advanced Management Science, Vol. 2, No. 4, pp. 326-332, December 2014. doi: 10.12720/joams.2.4.326-332