With the advent of continuous economic reforms the economy has recorded average growth rate of around 6% in the last decade. One major reform that has taken place in the area of attracting foreign investment into India, via either the foreign direct investment (FDI) route or from foreign institutional investors (FIIs). FDI is very stable by nature as it usually enters for long-term projects. It also helps to generate employment and bring in the latest technological inventions/advancements. FIIs, on the other hand, usually help in developing capital markets. Entrepreneurs can tap the capital market by wooing Fiis and can thereby set by new projects or use the funds for expansion, etc. However, FII investment may not be very stable; there can be sudden outflows if capital markets perform adversely, or are expected to perform negatively. Even in the South-East Asian economic crisis-in countries like Thailand, and Indonesia-it had been the FIIs who had disturbed growth trends by creating sudden outflows of forex reserves, thereby resulting in the devaluation of the local currency. The Govt. of India has set for itself the target of achieving $10 billion in FDI inflows per year. As per present guidelines, FIIs can invest in shares of Indian companies subject to maximum ceiling to 24% of the issued share capital of a company. Both FDI and FIIs bring in valuable capital and must be encouraged by suitable policy amendments. The Govt. should consider both as the same while finalizing capital expenditure for investment in companies/projects. Yet, due to the factors enumerated above, FDI is more suitable for a country like India as compared to FIIs as the Latter is short-term and volatile. Learned contributors in this book seek to explore various aspects of Foreign Direct Investment in country and how it is related to the economic development, employment generation, infrastructure development and the impact of FDI on a country as a whole.
ABOUT THE AUTHOR Ravishankar Kumar Singh
Ravishankar Kumar Singh, M.A. (Eco.), B.Ed., PH.D., started his teaching career from Navodaya Vidyalaya Samiti, Human Resource Development, New Delhi, during 1990s and currently he is a Faculty in the Deptt. of Economics, Mt. Olive College, Kohima, Nagaland. He has been recipient of merit scholarship. His own field of specialization is Econometrics and at present he is teaching Micro Economics and Developmental Economics. Meanwhile, he has presented several papers on “Economic Reformsâ€, “WTO and Agricultureâ€, “Poverty and Sustainable Developmentâ€, “Quality Education: Opportunities and Challenges†at various national and international level conferences. He is actively associated with a number of professional bodies like Indian Economic Association (Mumbai), All India Association of educational Research (Bhuvaneswar), Indian Institute of Economic Research (Allahabad) etc. Dr. Singh is the author of a number of popular and scholarly works, including: role of NGOs in Socio-Economic Development; Ecotourism and Sustainable Development, Quality Education: Opportunities & challenges and Economic Reforms in India (2 Volumes) which have been well received by the intellectual community and policy makers in India and abroad.
ABOUT THE AUTHOR V S Kulkarni
Vijayprasad Shankar Kulkarni (1958) completed his college and University degrees in Economics at Karnataka University, Dharwad (Karnataka). He was a recipient of a number of scholarships. He obtained his M.Phil., Ph.D., and LL.B. degrees from Mumbai and Pune Universities. He served as a teacher in Business Economics for more than two decades at K.M.C. college, Khopoli (Maharashtra). He is also a visiting faculty member for P.G. degrees leading to M.A., M.Com. & M.B.A. He has written a number of research papers for national and international level seminars, held in India and abroad. He has also written articles for a number of books and journals. At present he is serving as Principal, Manjunatha College of Arts & Commerce, Thakurli, Thane Dist Mumbai.
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