Effect of economic recession on FDI in India

[anyzen]

This ongoing economic recession means bad business for all sectors, When there is no liquidity how the fdi will emerge.

[neeti2203]

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[Hemnaath]

Hi all,

Herewith i would like to share upon my views regarding the topic "The Effect of economic recession on FDI in India" The first and foremost information i would like to share is that there is a common misperception amongst all that our nation India is under recession due to the global recession.Infact,that is a pure misperception.Since recession was first started in the US country in real estate industry and then in banking sector.Which eventually lead other countries end up in the recession effect.The fact is that our nation is the larger exporter of IT,which made an effect amongst IT industry.So this was mis perceived as we are under recession.Our nation is safer than any other nation across the globe.I would call it as either meltdown or slowdown which in turn is good for economy like India.The term i used meltdown or slowdown is not my own perception.This is how the famous economists around the globe termed the turmoil.I would strongly say that there is no recession exist in our nation in any industry.Even on FDI it was just a meltdown or slowdown,not a recession.

Cheers!

Hemnaath

[MRK466]

FDI is effected by short term variations in markets,ay some point in past it has shown its effect but market gradually picked up......

[anand2110]

FDI r good for india...but we can remain dependent on them but again our deficit doesnot allow us to take ne other steps...

[gurpreetsingh]

Well FDI in India have suffered due to recession. In India we have actually not faced the recession but it was a slowdown in economy. Now conditions have improved but still i see that there will be less FDI in comparison to it should be in India if recession was not there. FDI in real estate sector, IT Sector, B.P.O Sector, in these sector we can expect good FDI in near future. But i also think we must be aware and alert in F.D.Is because if Indian government became too much soft towards F.D.Is so it can also have a negative impact on our economy if recession in future again hit the world economies.

[shrey420]

In respect of FDI- FDI or Federal Direct Investment, is the investment by foreign nationals in a country’s industries. In case of weakening of US$, there will be lesser funds in terms of rupees, invested by the US citizens and thus the FDI from US as such will be effected adversely. However with the US industries in turmoil, India will become a very attractive destination for all investment, within the US and without. Therefore the impact of a weak US dollar on FDI as such will be suitably compensated by the increase in FDI from other sources.imports by a substantial amount. As such, in a purely economic sense, exports to the US are much more essential for the economy and for the livelihood of all involved. Thus it can be said that the loss which Indian economy will face through the loss in exports will far out-weight the gain for the importers.