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Paper Topic:

FDI in India Actual Vs Real Flow- An MNC prespective

Table of Contents



Need for the Study

Rationale of the Study

Significance of Study

Investment Regime of India - Background Information

Foreign Direct Investment in India - Trends and Statistics

Theoretical Framework

Foreign Direct Investment - Significance and Importance

Foreign Direct Investment in India

Research Methodology

Research Question / Problem Statement

Research Hypothesis

Sources for Data Collection

Secondary Sources

Primary Sources

Questionnaire for Interviews

The Questionnaire

Basis for Data Analysis

Overview of MNCs and Foreign Direct Investment

Research Findings


Findings from Secondary Sources

Key Findings from Primary Sources

Analysis and Interpretations

Interpretation of Primary Data

Discussion and Analysis

Answering the Research Question

Testing the Hypothesis

Conclusion and Policy Implications Abstract

The dissertation is aimed at exploring the factors responsible for a gap that exists between the real FDI inflows as compared with approved FDI in India moreover the dissertation is also intended to find out weather or not there is a link between corporate taxes , import duties and the FDI gap in country . Both qualitative and quantitative approaches are utilized to explore different aspects of the issue . Secondary analysis of data is done to portray the picture of current scenario of FDI , GDP Growth , corporate taxed , import duties and MNCs activities . In addition 20 interviews are conducted from the representatives of multinational companies operating in India that have secured approval for Foreign Investment from the Indian Government from the representatives of the Reserve Bank of India and from Foreign Investment promotion Board . These interviews are conducted with a view to find evidence about the impact of corporate taxes and duties on FDI and to find out that up to what extent these factors are determining the gap between approved and actual FDI inflows coming to the country

1 . Introduction

Foreign direct investment is a modern phenomenon that is gaining importance in today 's advanced world . IMF 's Balance of Payments Manual fifth edition (BPM5 ) defines the foreign direct investment as a category of international investment that reflects the objective of a resident in one economy (the direct investor ) obtaining a lasting interest in an enterprise resident in another economy (the direct investment enterprise . For the establishment of foreign direct investment relation ship it is very necessary that the investor must acquire about 10 ordinary shares or voting power of an enterprise (IMF Report , p6 , 2003

The growing volume of international trade and capital flows across the bs has characterized the economy of the modern world in the recent era of globalization . Foreign Direct Investment has become a vital tool for the countries to attain sustainable economic growth especially the developing countries have recognized the importance of FDI as a channel through which they can get access to the resources essential for the economic growth however a major share in the global FDI is contributed by the developed countries and the developing countries are still not getting big share in the global FDI inflows (Thomas L . Brewer , 1991 p1 . There are several factors behind this low share of developing countries like inadequate...

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