A Study on Regional Inequality in FDI Inflows into the Indian States

FDI is preferred over all other capital flows in the world. FDI is desired as it is a non-debt financial capital. FDI raises the investment in the host economy which by multiplier effect leads to increase in employment, income and savings. It provides latest machinery, state of art technology, skill, managerial know how and boost export of manufactured goods and services in the host economies. It provides wide and varied choices to consumers as companies compete to provide the quality goods to consumers. The competition ensures breaking of the domestic monopolies and bringing down the prices. FDI also contributes to the corporate tax revenue of the host economies