Dynamics of Foreign Direct Investment (FDI) Location in India: An Empirical Analysis

International Journal of Economics and Management Studies
© 2017 by SSRG - IJEMS Journal
Volume 4 Issue 2
Year of Publication : 2017
Authors : Malleshappa.S.Kumbar, Prof.Vasudev Sedam.H
How to Cite?

Malleshappa.S.Kumbar, Prof.Vasudev Sedam.H, "Dynamics of Foreign Direct Investment (FDI) Location in India: An Empirical Analysis," SSRG International Journal of Economics and Management Studies, vol. 4,  no. 2, pp. 1-7, 2017. Crossref, https://doi.org/10.14445/23939125/IJEMS-V4I2P101


In the era of globalisation, foreign direct investment [FDI] is considered as an important mechanism for channelising transfer of capital and technology and thus perceived as a potent factor in promoting economic growth in the host of the countries. As a result there is a tremendous growth in the global flow of FDI in the last two and half decades. India is no exception to this trend. After opening up of the economy to the global market, there is a rapid increase in FDI inflows to the country. However, the bane of FDI inflows to the country is that foreign investment flows have largely concentrated in the few states. Economically advanced states have attracted the lion’s share of FDI flows. The top 6 states viz.Maharashtra, Delhi, Karnataka, Tamilnadu, Gujarat and Andhrapradesh together accounted over 70%of FDI equity flows to India in the post liberalization period and they continue to do so even now also. Against this backdrop the present paper tries to give an overview of dynamics of location of FDI in India. Understanding the dynamics of interstate variations in FDI inflows is very much important for balanced regional development in the country.


Foreign Direct Investment, Spatial distribution, Dynamics, Inequalities.


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