FOREIGN DIRECT INVESTMENT (FDI) IN INDIA SERVICE SECTOR (A STUDY OF POST LIBERALIZATION) Dr. Arjun Singh Sirari, Principal, Government UG College, Satpuli (Pauri), Uttarakhand Mr. Narendra Singh Bohra, Assistant Professor, Faculty of Management, Graphic Era University, Dehradun
ABSTRACT FDI is a tool for economic growth through its strengthening of domestic capital, productivity and employment. FDI also plays a vital role in the up gradation of technology, skills and managerial capabilities in various sectors of the economy. The present paper attempts to analyze significance of the FDI Inflows in Indian service sector since 1991 and relating the growth of service sector FDI in generation of employment in terms of skilled and unskilled. Key Words: FDI, Service Sector, Employment
INTRODUCTION FDI to developing countries in the 1990s was the leading source of external financing and has become a key component of national development strategies for almost all the countries in the world as a vehicle for technology flows and an important source of non-debt inflows for attaining competitive efficiency by creating a meaningful network of global interconnections. FDI provide opportunities to host countries to enhance their economic development and opens new opportunities to home countries to optimize their earnings by employing their ideal resources. India ranks fifteenth in the services output and it provides employment to around 23% of the total workforce in the country. The various sectors under the Services Sector in India are construction, trade, hotels, transport, restaurant, communication and storage, social and personal services, community, insurance, financing, business services, and real estate. Need and importance of the study The flow of FDI in Indian service sector is boosting the growth of Indian economy, this sector contributing the large share in the growing GDP of... [continues]
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