“CATALYST IN THE GROWTH OF INDIAN ECONOMY: FDI AND FIIS”

Received: 19.09.2021; Revised: 28.10.2021, Accepted: 26.11.2021, Published Online: 28.12.2021

Dr. Kamal Kishor Pandey

Associate Professor, School of Business Management, IFTM University, Moradabad

Email: kamalpandey7719@gmail.com

Ms. Nidhi Varshney

Assistant Professor, School of Business Management, IFTM University, Moradabad

Email:nidhivarshney27@gmail.com

Dr. Megha Bhatia

Assistant Professor, School of Business Management, IFTM University, Moradabad

Email: meghamendiratta@gmail.com

Abstract

Apart from being a critical driver of economic growth, Foreign Direct Investment (FDI) has been a major non-debt financial resource for the economic development of India. Foreign companies invest in India to take advantage of relatively lower wages, special investment privileges like tax exemptions, etc. For a country where foreign investment is being made, it also means achieving technical know-how and generating employment.Indian economy opened up to the globalworld in 1991 by allowing foreign investors to make investments in India. The foreign investments can be made either in the listedcompanies through financial markets (called Foreign Institutional Investors) or by directly investing capital in the listed/unlistedcompanies in India (called Foreign Direct Investment).Being most populous country, India is facing many challenges that hampering the growth of economy like societal and financial factors. Deficit in trade, interest rates, inflation are a part of them. Indian economy was influencing by western countries through their investments in to the financial system. Thus, the sources of foreign capital like FDI, FII were become dominant players in capital formation as well as risky too.The present paper tries to do a comparativeanalysis of FDI and FII and their contribution towards economic growth.

Keywords: Foreign Direct Investment, Foreign Institutional Investors, Indian Economy, GDP.