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IntroductionAccording to the definition by the International Monetary Fund, Foreign Direct Investment refers to the section of the international investment, which shows the objective of a business entity that is resident in one single getting control and lasting interest in an enterprise based in another nation. Foreign Direct Investment, FDI, inflows into a given host country have very huge impact on the various sectors of the homeland economy. The effect of FDI on the homeland economy is normally felt through its contribution to the overall productivity of the economy. FDI inflows bring massive technological advancements, advanced managerial skills and foreign exchange reserves in to the host country. However, it is important to mention that for an emerging economy like India, it becomes...
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