Submitted for the award of the degree of Doctor of Philosophy In Management By Ms. SAPNA HOODA Registration No: 2K07-NITK-Ph.D1169-HU Under the supervision of DR. RAJENDER KUMAR (Professor)
DEPARTMENT OF HUMANITIES AND SOCIAL SCIENCES NATIONAL INSTITUTE OF TECHNOLOGY (DEEMED UNIVERSITY) KURUKSHETRA – 136119 HARYANA (JANUARY 2011)
NATIONAL INSTITUTE OF TECHNOLOGY, KURUKSHETRA, DEEMED UNIVERSITY, KURUKSHETRA, HARYANA, INDIA.
This is to certify that the thesis entitled, “A STUDY OF FDI AND INDIAN ECONOMY”, being submitted by SAPNA HOODA to the National Institute of Technology, Kurukshetra, Deemed University, Kurukshetra, for the award of the degree of Doctor of Philosophy is a record of bonafide research work carried out by her. The matter presented in this thesis has not been submitted for the award of any other degree of this or any other institute. (Ms. SAPNA HOODA) Candidate
This is to certify that the above statement made by the candidate is correct to the best of my knowledge. Date: ………………. DR. RAJENDER KUMAR (Professor) Department of Humanities and Social Sciences, NIT, Kurukshetra, Haryana, India.
I sincerely express my deep sense of gratitude to Dr. RAJENDER KUMAR, (Professor), Deptt. of Humanities and Social Sciences, National Institute of Technology, Kurukshtra, for his extraordinary cooperation, invaluable guidance and supervision. This thesis is the result of his painstaking and generous attitude. I would like to thank the members of Board of Studies, N.I.T., Kurukshetra for their valuable suggestions and useful comments throughout this research work. I owe and respectfully offer my thanks to my noble parents for their constant moral support and mellifluous affection which helped me to achieve success in every sphere of life and without their kind devotion this thesis would have been a sheer dream. I am also thankful to my siblings for their constructive discussions, perseverance and encouragement during this research work. I would also extend my special thanks to my Jiju and nephews of mine for their humour and light-heartedness during this time consuming effort of mine. I sincerely acknowledge the efforts of all those who have directly or indirectly helped me in completing my thesis successfully. It is the kindness of these acknowledged persons that this thesis sees the light of the day. I submit this thesis of mine with great humility and utmost regard. (Ms. SAPNA HOODA) Regn. No.2K07-NITK-Ph.D1169-HU
Chapter-1 1.0 Introduction 1.1 An Overall View 1.2 FDI Inflows in India in Post Reform Era 1.3 Objectives 1.4 Hypotheses 1.5 Research Methodology 1.6 Importance of the study 1.7 Limitations of the study
Page No. 1 1 6 8 8 8 11 12
Chapter-2 REVIEW OF LITERATURE 2.0 Introduction 2.1 Temporal Studies 2.2 Inter – Country Studies 2.3 Inter – Industry Studies 2.4 Studies in Indian Context 2.5 Conclusions 2.6 Research issues and Research Gaps 14 14 20 36 38 42 44
Chapter-3 TRENDS AND PATTERNS OF FDI INFLOWS 3.0 Introduction 46
3.1 Trends and Patterns of FDI in the World 3.2 Trends and Patterns of FDI flow in Asia 3.3 Trends and Patterns of FDI flow in India 3.4 Sources of FDI in India 3.5 Distribution of FDI within India 3.6 Trends and Patterns of FDI flow at Sectoral level 3.7 International Investment Agreements 3.8 Conclusions
47 51 54 60 62 63 76 76
Chapter-4 FDI AND INDIAN ECONOMY 4.0 Introduction 4.1 FDI and Indian Economy 4.2 Selection of Variables 4.3 Role of FDI on Economic Growth 4.4 Conclusions 83 84 84 108 114
Chapter-5 FINDINGS AND SUGGESTIONS
BIBLIOGRAPHY LIST OF TABLES LIST OF CHARTS
131 vi vii
LIST OF TABLES
Table 1.1: Table 3.1: Table 3.2: Table 3.3: Table 3.4: Table 3.5 Table 3.6: Table 4.1: Table 4.2 Table 4.3: Table 4.4:
FDI inflows in India (from 1948 - 2010) FDI flows in the World (from 1991-2007) Share of India in World...