Volume : 4, Issue : 4, April - 2015

ROLE OF FOREIGN DIRECT INVESTMENT IN EMPLOYMENT GENERATION

Nidhi

Abstract :

<p><p>&lt;p&gt;&amp;lt;p&amp;gt;&amp;amp;nbsp;Investment in a country by individuals and organizations from other countries is an important aspect of international&amp;amp;nbsp;&amp;lt;/p&amp;gt; &amp;lt;div&amp;gt;finance. This flow of international finance may take the form of portfolio investment (acquisition of securities) or direct&amp;amp;nbsp;&amp;lt;/div&amp;gt; &amp;lt;div&amp;gt;investment (creation of productive facilities). This paper focuses that an inflow of FDI improves economic growth and&amp;amp;nbsp;&amp;lt;/div&amp;gt; &amp;lt;div&amp;gt;thereby enhances employment opportunities. The main objective of this paper is to find out the role of FDI in employment generation, especially&amp;amp;nbsp;&amp;lt;/div&amp;gt; &amp;lt;div&amp;gt;in case of India. Most studies have shown that the impact of FDI on the host country has been generally favourable in developing countries. It is an&amp;amp;nbsp;&amp;lt;/div&amp;gt; &amp;lt;div&amp;gt;important stimulus for the economic growth of India. It creates high perks jobs for skilled employees in Indian service sector. It has helped to raise&amp;amp;nbsp;&amp;lt;/div&amp;gt; &amp;lt;div&amp;gt;the output, productivity and employment in many sectors, especially in service sector. Banking and insurance is first and telecommunication is&amp;amp;nbsp;&amp;lt;/div&amp;gt; &amp;lt;div&amp;gt;second segment of service sector which pick the growth after coming of FDI. There has been a visible positive impact on the creation of jobs not&amp;amp;nbsp;&amp;lt;/div&amp;gt; &amp;lt;div&amp;gt;only in those sectors attracting FDI inflows but also in the supportive domestic industries. FDI play a major role in world trade and investments&amp;amp;nbsp;&amp;lt;/div&amp;gt; &amp;lt;div&amp;gt;because of their high management skills, technology, financial resources and other related advantages&amp;lt;/div&amp;gt;&lt;/p&gt;</p></p>