Top Sectors and Countries of FDI Inflows in India

Abstract

India has witnessed increased FDI inflows over the years. The investible funds flow from funds surplus countries to developing world in search of higher returns. The distribution of FDI across sectors remained skewed and is concentrated to certain sectors. This paper aims to study the pattern of FDI inflows in terms of top investing countries and the top sectors attracting FDI inflows. The major sector that attracts bulk of FDI is service sector. There remains a scope for attracting greater FDI from countries and investments in real estate, manufacturing sector and health care.