International Journal of
Innovation, Management and Technology

Abstract

Foreign Direct Investment (FDI) is a superb conduit for the transfer of technology and know-how to developing countries. To put in simple words, FDI refers to capital inflows from abroad that are invested in or to enhance the production capacity of the economy. This message has not been lost on India's policy makers. They have though until the decade of the nineties attempted to regulate and control its spheres of activity and the contractual forms of foreign enterprise participation in the economy. It is the policy of the Government of India to attract and promote productive from non-residents in activities which significantly contribute to industrialization and socio-economic development. FDI supplements the domestic capital and technology. This paper firstly speaks about the FDI culture in India, secondly, reviews economic reforms in India and global response to India’s reforms, the next level discusses the policy issues that would address India’s relative lack of success in attracting FDI and the key recommendations towards attracting diasporic FDI is presented. The last part reveals the ‘Expanding Opportunities for Global Retailers’ with reference to the retail sector.