Open AccessFDI and Growth of Service Sector in India
Author(s) -
Debabrata Sutradhar
Publication year - 2014
Publication title -
artha journal of social sciences
Language(s) - English
Resource type - Journals
ISSN - 0975-329X
DOI - 10.12724/ajss.31.1
Subject(s) - foreign direct investment , liberalization , tertiary sector of the economy , globalization , business , real estate , tourism , international trade , financial services , international economics , service (business) , economics , market economy , finance , political science , marketing , law , macroeconomics
In the contemporary globalised economy, service sector attracts the major share of Foreign Direct Investment (FDI) in the world. India being a part of this phenomenon also attracts most of its FDI in the service sector. The present paper highlights the trend in FDI movement in the world in general and India in particular. Further, it reviews the FDI policy in India in the post liberalized period. The growth of FDI in services sector may be attributed to the changing pattern of global FDI and also the liberalization and globalization policies pursued by India. Since 2000, the high inflow of FDI has resulted in the growth of new services viz., financial and non-financial services, telecommunication, computer software and hardware, hotel and tourism, construction activities and real estate. The growth of services sector had led to the growth of export of services from India which now accounts the majority of export from the country.Keywords: FDI, Services sector, Export, Liberalization.