Foreign Direct Investment in India: Regional and Sectoral Dimensions

Author(s)	Brototi Boral
Country	India
Abstract	The paper aims to evaluate the sector and state wise distribution of Foreign Direct Investment (FDI) in India from 1991 to 2021. Decadal comparison has been made to compare sector and state-wise distribution of FDI inflow. The analysis shows that there has been an upward rising trend in overall FDI in the last thirty years. The three sectors that attracted the highest cumulative FDI in thirty years include the Services Sector, Computer Software and Hardware, and Telecommunications. The three major states where the highest amount of FDI inflow has been reported are Maharashtra, Delhi, and Karnataka. Gradual expansion in sectoral demand along with liberalized government regulation helped to attract foreign equity inflow in different sectors. Unlike the sectoral distribution of FDI, regional distribution has remained almost unchanged with Maharashtra, Delhi, Karnataka, Tamil Nadu, Gujarat, and Haryana remaining major destinations of FDI inflow. Thus, it was found that sector-wise concentration is coming down while regional concentration has increased.
Keywords	Foreign Direct Investment (FDI), Telecommunication Sector, Service Sector, Computer Software, Concentration
Field	Sociology > Economics
Published In	Volume 7, Issue 1, January-February 2025
Published On	2025-02-08
DOI	https://doi.org/10.36948/ijfmr.2025.v07i01.36204
Short DOI	https://doi.org/g84fdh

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