Volume : 8, Issue : 3, March - 2019

Contribution of Foreign Direct Investment and Foreign Portfolio Investment in Indian Economy: a Comparative Study

Nabanita Pal

Abstract :

Foreign Direct Investment and Foreign Portfolio Investment have gained a significant role in Indian Capital Markets and its economy also. FIIs were permitted to invest in all the listed securities traded in Indian Capital Market for the first time in September 1992. As per the RBI, report on currency and finance (2003-04), since 1991 there has been continuous move towards the integration of the Indian Economy with World Economy. At the beginning of liberalization (1991) FDI and FPI flows to India have steadily grown in importance any economy in the world is major affected by the foreign investments and movement of its foreign capital as an indicator of performance of its various sectors in a particular industry. The don of 21st century has shown a real dynamism of stock market and the various benchmarking of sensitivity index (sensex) in terms of its highest peaks and sudden falls. A well developed stock market has its impact on the development of economy. This study is based on 16 years data from 2000 to 2016.