Keywords: intangibles, capital flows, economic growth, crowding out, India, foreign direct investment, FDI inflow, Indian economy, savings-income ratio
A note on foreign direct investment and Indian economy
Foreign direct investment has assumed importance in the policy space of the developing countries in their effort to speed up the tempo of economic development. Various aspects of foreign direct investment (FDI) are being investigated in the literature so as to facilitate the decision taking process of the authority of the country. India is no exception in this regard. Two such areas are determinants of the inflow of FDI and possible role of FDI in determining the saving-income ratio of the country. These issues have been addressed in this paper.