5 Advantages of Foreign Direct Investment in India

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5 Advantages of Foreign Direct Investment in India
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1. EMPLOYMENT

• The disguised unemployment in the secondary
  sector is the major crisis Indian skilled or
  unskilled labour is facing, foreign investments
  prove themselves.
• FDI has boosted job- creation and increased job
  options leads to increased income which
  ultimately leads to an increase in the expansion
  of the Indian Economy.

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2. HUMAN CAPITAL

• Human Capital refers to the talents and
  brainpower in the form of the human resource of a
  country.
• India is fortunate enough to have a great human
  resource in the way of its youth. Lack of
  education, skill development and job
  opportunities mar such resources.
• FDI in India bridges the gap between social
  capital and better job options.

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3. STABLE EXCHANGE RATE

• The foreign exchange in India has improved
  drastically with the inflow of Foreign
  Investments. Hence, the central bank of India
  maintains a stock of several international
  exchanges in bulk.
• This stabilises the exchange rate thereby
  building a stable foreign monetary policy.

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4. ADVANCEMENT OF BUSINESS AND TECHNOLOGY

• The state, businesses or firms receiving FDI in
  India are given access to a vast horizon of open
  markets and trade in any part of the world.
• These foreign companies provide all the
  modernised tools and technologies along with
  modern financial techniques for the all-round
  profit of the business.

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5. ECONOMIC GROWTH

• Apart from generating jobs and better financial
  conditions, foreign investment is also a
  significant source of revenue collection in
  India.
• Whenever a company launches a new tie-up or opens
  a new hub in the Indian Market, a large portion
  of its profit is deducted as a revenue. Hence,
  the external capital inflow is increased, and the
  Indian Economy grows.

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