Analysis On FDI Into India And Its Economic Effects

Since the economic freedom from the 1990s,India has emerged a new series of changes in the scale and structure of FDI. FDI enterprises into India have been increasing, and at the same time FDI scale into India has also gradually been enlarged.FDI into India has exerted some positive effects on its ecnomic development:First,FDI has increased its savings for investment,making up for the exsisted "two gaps" .The flowed capital can directly form productivity, boosting India's capital formation and ecnomic growth. Second, after its independence, India's technological policies have also changed a lot, the technological overflowing effects by FDI have been becoming more and more noticeable, mainly representing their increacing India's factor productivity, changing the product structures, promoting reseach and development and enhancing efficency. Third, FDI into India mainly flows into the state owned enterprises oriented by the markets, but in the recent years, more and more FDI flows into some basic industries and manufacturing departments. FDI brings some rare resources for India , forming industry effects by the industrial former and latter auxiliary investments,promoting the adjustment and escalation of industrial strctures and changing the employment strctures.Eventually,FDI also has some positive effects on India's import and export trade,product structures and international balance.Meanwhile, FDI also has some negative effects on India'economic development:...