Foreign direct investment (FDI) in India has played an important role in the positive development of the Indian economy.

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Foreign Development Investment in India

Foreign direct investment (FDI) in India has played an important role in the positive development of the Indian economy. The Indian government has been trying so hard to turn India to become an attractive international investors friendly place, they tend to encourage and promote a favorable business environment for foreign investors. It seemed that their hard work is paying back. There has been a big increase on the number of FDI and FDI inflow in India, from year to year (graph 1). It rose by more than 100%, while the cumulative amount of FDI equity inflows is about US$205.96 billion from April 2000 to May 2011. India is also rank 2 in global foreign direct investments published by the United Nations Conference on Trade and Development (UNCTAD). They also forecasted that India would be one of the top 5 attractive destinations for foreign investors during 2011 - 2012. In the 2010 European Attractiveness Survey done by a global consultancy firm Ernst & Young, India is named fourth as the most attractive FDI destination (with a share of 22%). It also forecasted that in the next 3 years, India would become more attractive and