Fdi: a Study in the Economic and the Constitution Perspectives

Topics: Investment, Retailing, Human rights Pages: 13 (4593 words) Published: February 17, 2013
FDI: A study in the Economic and the Constitutional Perspectives. Introduction
The constitution of India through the preamble, fundamental rights and directive principle of state policy set its ideal and goal in its true sprits to do social justice by removing economic inequalities provide decent standards of living; protect the interest with aim to end poverty, ignorance, diseases and inequalities of opportunity. It refers the making economic policy also where FDI elected as one of the major such economic policy allowed to achieving the objective of constitution of India. Subsequently Foreign direct investment (FDI) is that investment which a government, institutions or individuals make in a different country to that of the investor’s own country of origin. Under the head of foreign policies which is described as the diplomatic relation between any two countries which is founded in 1970 by Samuel P. Huntington in the bimonthly American magazine. This relationship can take the form of subsidiary or joint venture, depending upon the interest of control and/or the stipulation of the government of the host country. The host country is expected to benefit from the inflow of such intangible assets. Transnational corporations from developing countries are motivated by market-seeking, efficiency-seeking, resource-seeking, or created-asset-seeking behaviour. The last two decades of the 20th century witnessed a dramatic world-wide increase in foreign direct investment (FDI), accompanied by a marked change in the attitude of most developing countries towards inward FDI. As against a highly suspicious attitude of these countries towards inward FDI in the past, most countries now regard it as beneficial for their development efforts and compete with each other to attract it. India is one such country which emerged in the world scenario in the 1990s and has become a strong destination for foreign investment More particularly in the era of globalization, is to be viewed with a human rights perspective. Due to worldwide movement of international law over raised the consciousness on life, liberty, and dignity of individual. This paper is an attempt to explore the relationships among FDI, human rights and the perambulatory ideals. Objectives

The present study is mainly proposed to examine the following objectives. 1. To know the concept, structure and determinants of FDI 2. To know the extent of inflow and outflow of FDI into India. 3. To scrutinize the bang of FDI on the Indian economy with constitutional perspective and human right. 4. To arrive at tangible conclusions.

5. To make suggestions for framing better policies.
Concept and meaning of FDI
Foreign direct investment (FDI) is direct investment made into manufacture in a country by a company situated in another country. The FDI refers to the net inflows of investment to get an enduring organization interest in a venture working in an economy other than that of the investor. Generally, the FDI includes participation in administration, joint- business enterprise, transfer of technology and proficiency. The types of FDI are one- Inward Foreign Direct Investment and Outward Foreign Direct Investment. This will be done by buying a company in the country or by mounting its operations of an on hand business in the country. To take advantage of cheaper wages in the country, special investment privileges like tax exemptions offered by the country in which the investment is made as an incentive to get tariff-free admission to the country‟s markets, etc. are the reasons for Foreign Direct Investment. Therefore FDI or Foreign Direct Investment, is Fund flow between the countries in the form of Inflow or outflow by which one can able to gain some benefit from their investment, whereas another can exploit the opportunity to enhance the productivity and find out better position through performance. The potential advantages of the...
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