A Study of Foreign Direct Investment in India with Special Reference to Pre & Post Covid Regime

Abstract

The National Economies function on several dynamics. One of the essential contributors to the economy is the foreign direct investments (FDI). FDI essentially is a financial transactional strategy which infuses the global presence and enhanced operations. The COVID-19 pandemic has created a paradigm shift in economic dynamics with a potential impact on Foreign Direct Investment (FDI) in India. The uncertainty and disruptions caused by the global health crisis prompted a cautious approach from investors, leading to a temporary decline in FDI inflows globally. The situation in India reflects the broader challenges faced by emerging economies, navigating through the economic fallout of the pandemic. Despite the initial setbacks, India’s resilience and strategic measures have positioned it as an attractive destination for FDI post-COVID. The government’s proactive steps, coupled with economic reforms, have aimed to restore investor confidence and create an environment conducive to sustained FDI growth.

This study is a descriptive research conducted massively with the help of secondary data. The Researchers aim to understand the Concept & significance of Foreign Direct Investments (FDI). The study further aims to analyze the dynamics of FDI in Indian Context with special reference to Pre- and Post-COVID regime. The Authors highlight the importance of FDI for India's growth and extend insights into FDI's role in shaping India's development post-pandemic. The Researchers Conclude that Post Covid FDI Inflow haven’t been affected much due to pandemic however the negative impact is attributed to the War (Russia – Ukraine) and subsequent Supply chain issues. The drop of 16% in recent past (22-23) didn’t had the impact of Covid, instead it was External environment pressure (War). (www.ibef.org) The Researchers further conclude that the FDI scenario in India is into positive direction (barring the external threats like war). As the global economy gradually recovers, India’s strategic initiatives and resilience are expected to contribute to the revival of FDI, playing a pivotal role in the nation’s economic resurgence in the post-COVID regime.