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Fdi in Service Sector in India

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Fdi in Service Sector in India
Narendra Singh Bohra.,et.al., Int. J. Eco. Res., 2011, 2(2), 10-18

ISSN: 2229-6158

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


References: Research paper Nagaraj. R, Indian Economy since 1980: Virtuous Growth or Polarisation, in Economic and Political Weekly, pp 2831-2838, August 2000. Narula, Rajneesh (Ed.), Trade and Investment in a Globalising World, Series in International Business and Economics, Elsevier Science Ltd., 2001. Oberai.A.S and Chadha.G.K (Ed.), Job Creation in Urban Informal Sector in India: Issues and Policy Options, International Labour Organisation, 2001. Raipuria, Kalyan, What Size the ‘New’ Economy? A Conduit Approach, Economic and Political Weekly, vol 37,pp 1062-1067, March 2002. IJER | MAR - APR 2011 Available online@www.ijeronline.com 17 Narendra Singh Bohra.,et.al., Int. J. Eco. Res., 2011, 2(2), 10-18 ISSN: 2229-6158 Saha, Biswatosh, Foreign Investment, Financial Markets and Industry: India in the 1990s, Unpublished Doctoral Dissertation, mimeo. Indian Institute of Management, Calcutta, May 2001 Saggi, Kamal, Trade, Foreign Direct Investment, and International Technology Transfer: A Survey, The World Bank Research Observer, vol 17, no. 2, pp 191-235, Fall 2002. Mrs. Jayashree patil-dake, ‘analysis of fdi inflows in india” volume no: 2 (2011), issue no. 1 (january) Misra, S.K. (2000). Indian Economy, Himalaya Publishing House, 18th Edition, p. 739 New Delhi .Assaf Razin & Efraim Sadka (2007). Foreign Direct Investment, Analysis of Aggregate Flows Princeton University Press, U.S.A. Kenneth Froot (1993). Foreign direct investment, University of Chicago Press, U.S.A. Jalan, Bimal (1992), ‘Balance of Payments: 1956 to 1991’, in The Indian Economy: Problems and Prospects, Penguin Books India(P) Ltd., New Delhi Others SIA Newsletter (various issues), Ministry of Industry, Government of India. SEBI, Securities and Exchange Board of India (Foreign Institutional Investment), 1995, SEBI, Mumbai 1995 The Economic Times, 2003, July 1. The Financial Express, 2003, July 1. VANS: Database of business newspaper clippings maintained by Vans Information Services Limited. World Bank, 1999, World Development Indicators, Business Line, 2001, July 24. Business Standard, 2003, July 1. Report of ASSSOCHAM on FDI in 2008-09 Economic Survey of India, 2005-2009 ECONOMY WATCH, various data tables, various data tables EXIMIUS export Advantage, FDI in services sector, March’06. Focus WTO, Services, Source WTO, Vol. 8, No. 4 Nov Dec 2006 Global Investment Report, UNCTAD, 2002 Websites http://www.sebi.gov.in/Index.jsp?contentDisp=FIITrends http://www.sethassociates.com/policy_on_foreign_direct_investment http://dipp.nic.in/ http://planningcommission.gov.in/ http://finmin.nic.in/capital_market/capital_market.asp http://business.mapsofindia.com/india-gdp/sectorwise/services-sector growth-rate.html http://www.randstad.com/the-world-of-work/employment-rises-in-indias-service-sector?c=4374 www.indiabudget.nic.in www.indiaonestop.com/economy-macro-issues.htm www.unctad.org http://planningcommission.nic.in/data/datatable/Data0910/tab32.pdf http://dipp.nic.in/fdi_statistics/india_fdi_index.htm http://www.startbizindia.in/india_fdi_trend.php IJER | MAR - APR 2011 Available online@www.ijeronline.com 18
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