Comparative Analysis of FDI in India and Brics Nations Mr.Piyush Shah: Research Scholar, JJT University, Rajasthan Dr
July 2012 Entire Research, Vol.- 4, Issue-III 1 Comparative Analysis of FDI in India and Brics Nations Mr.Piyush Shah: Research scholar, JJT University, Rajasthan Dr. Nishikant Jha: Research scholar, JJT University, Rajasthan Abstract : The research paper tries to bring out the comparative study of flow of FDI in India and its comparison with BRICS nations. It gives the historical back drop of the various trends in FDI of various countries. It further gives the ranking to various country based on the flow of FDI. Findings: China attracted highest FDI, followed by Brazil (stands second), Russia (stands third), India (stands fourth) and South Africa (stands fifth). Introduction: All the countries in the world are continuously striving for rapid economic growth and as a result they are inviting more and more investments by allowing foreign investors to invest in their land. There are several factors that help or hinder the economic growth of a country, and the factors, that are often identified as stimulants (World Investment Report UNCTAD, 1994) for a country‘s growth are: (1) Large amounts of investment capital, (2) Advanced Technologies, (3) Highly skilled labor, (4) Well-developed transportation and communication infrastructure, (5) Stable and supportive political and social institutions, (6) Low tax rates, and (7) Favorable regulatory environment. Differences in the growth rates of the countries are explained by the differences in the endowments or levels of these factors (Dondeti and Mohanty, 2007). Though, FDI is seen as a vital factor in inducing growth rate, however, it will only lead to growth if its inflows are properly managed (Bezuidenhout, 2009).
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