| Summary: | ABSTRACT
Since 1991, after the external payment crisis in India, there has been liberalization of various policies by the Government of India. Due to this there has been rapid surge of FDI inflows in India. The current investment climate has attracted many foreign investors to India in various sectors. India is considered as one of the favorable destination of FDI. However the country also suffers from few weaknesses and constraints in terms of policy and regulatory framework, which restricts the FDI inflow in India.
This piece of research studies the various sectors of Indian economy such as telecommunication, automotive and IT where foreign companies are investing in India. It analyzes the various determinants and deterrents of FDI inflow in India. The study also compares the advantages possessed by India with China, which is considered as India's major competitor in terms of FDI inflows.
After analyzing the overall climate of FDI in India, an attempt has also been made to give the future outlook of India in coming years.
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