Volume : 2, Issue : 1, January - 2013

Foreign Direct Investment in J&K

Fayza Z.

Abstract :

The study focuses on foreign direct investment (FDI) and its importance to the economy of J&K. Recognizing that FDI, notwithstanding the type can contribute to economic growth and development most countries including India and our state J&K are constantly working to attract it and hence its demand has become highly competitive. However FDI does not go without negative effects such as conflicts between host and investor country and the creation of damaging competition to local firms. The negative effect could be minimized if policies and strategies for the promotion and attraction of FDI are part of, and integrated into general economic development and economic reform policies, and not seen in isolation. Although India has implemented strategies to attract more FDI’s, a refinement of some of these policies is needed if the state is to be successful in this regard.