Question

Explain in detail the role of foreign capital in India’s economic development.

Answer 1

Answer:

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Explanation:

Foreign capital has a key role in the economic development process of the country.

✨It is a source of modernization, income and employment generation in the economy.

✨ It reflects the lasting interest by the foreign direct investors in the entity or enterprise of domestic economy.

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Answer 2

FDI refers to capital inflows from abroad that are invested in or to enhance the production capacity of the economy. FDI and economic growth has long been a subject of great interest in the field of international growth. In the era of volatile flows of global capital, the stability of FDI emerges as an effective channel to faster growth in developing countries. it playa an important role in the long term development of the country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure,raising productivity and generating new development opportunities. in India , FDI is considered as a developing tool , which helps in achieving self reliance in various sectors and in oral development of economy .