IMPACT OF FDI ON INDIAN ECONOMY AND INDUSTRY DURING PRE AND POST-REFORM PERIOD
FDI is generally assumed to be more productive than domestic investment, because FDI encourages the incorporation of new modern technologies in the production function of the host economy. Hence it is believed that, FDI will enable the host economy to produce exportable goods, thus earn foreign exchange to them and also provide employment opportunities which will increase the level of income and decrease poverty. One of the biggest advantages of FDI enjoyed by India has been economic growth. A remarkable inflow of FDI in various industrial units in India has boosted the economic life of country. The main objective of the paper is to analyse the impact of FDI on Indian economy, as in the case of some industrial variables as well as some macro variables. The progress of these macro and industrial variables have also been studied by dividing them in the categories of pre and post-reforms period, which has also assisted in assessing the effectiveness of the reforms initiated by the government in the Indian economy. The research paper is theoretical as well as empirical in nature. It is based on the secondary data which are mainly available from various reports of government and semigovernment organizations in this field, research publications and also relevant websites on the internet. The data collected from such various sources have been classified, tabulated and analysed by using some conventional statistical tools and concluding observations made.