FDI AND INDIAN ECONOMY: A CASE OF JAPAN FDI

Foreign Direct Investment has been recognized a most powerful and convenient tool of transforming a traditional economy into a modern economy. Every nation world over is in the race of attracting more FDI inflows to accelerate the pace of economic progress and emancipation. India is no exception to this notion.India has been witnessing low growth in savings since independence and hence, keeping more pressure on the need of resources required for rapid rate of growth and development, the need of the hour. Keeping this in mind, since July 24, 1991, India has been trying hard to attract more FDI inflows to meet its development needs on the one hand and on the other hand to accelerate the pace of growth and development. But India has not been attracting FDI inflows commensuration to its requirement of the economy. The present paper analyses the emerging trends and issues in FDI inflows to India with added emphasis on Japanese FDI inflows to India. The paper has two sections. First deals with FDI inflows to India and Second Sections highlight emerging trends in Japanese FDI inflows to India.