SCENARIO OF FOREIGN DIRECT INVESTMENT IN INDIA DURING COVID-19
Dr. Iqbal Sayeed
ASSOCIATE PROFESSOR, ZAKIR HUSAIN DELHI (EVE) COLLEGE
Foreign Direct Investment (FDI) is cited as one of the most strategic tools for a developing economy as it brings in market discipline by increasing competition. In addition, there is a growing demand for products and services that are available across the world. Due to Indiaâ€™s increasing working population with higher purchasing power there is an increasing demand for products and services that are best in class. The covid-19 pandemic has set the international financial system into a downturn which means the global economy has begun shrinking whereas India has no exemption. Nowadays India has emerged as one of the most preferred destination for FDI. The covid-19 pandemic has put international investor confidence in India to the test. The basic aim of the study is to examine the effect of Covid-19 in Foreign Direct Investment in India. The trends of FDI inflows have been monitored to compare pre and post Covid-19 period. The results reveal in 2020 has worst effect, while after that, due the revised FDI policy and Indiaâ€™s internal capability to attract international investors, increase in FDI inflows have been observed. FDI is considered as a positive factor of the economic expansion could play a key part in assisting the economy in the time of crisis.
Keywords: Foreign Direct Investment, Covid-19 pandemic
Journal Name :
EPRA International Journal of Economic and Business Review(JEBR)
Published on : 2023-02-20