India’s Foreign Direct Investment and Economy


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Essay #: 055928
Total text length is 4,250 characters (approximately 2.9 pages).

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The beginning:
India's Foreign Direct Investment and Economy
Between 2005 and 2008, the Indian rupee (INR) had made some significant gains in its foreign exchange value and at the same time, the balance of payments also gained. INR is a soft currency and its exchange is heavily controlled by the Reserve Bank of India (RBI). Furthermore, the copious amount of “red tape” involved with investing money in India dictates that foreign direct investment is not as easy to do as it might be in other developing nations.
Yet, in 2005-2006, the balance sheet showed a net of over $15 billion in foreign direct investment (Current statistics, 2009, p. 1). The investment climate was definitely beginning to look up in India at that time due to that period being the first...
The end:
.....tination in these regards as the economic growth has only slowed down marginally. The balance of payments and foreign exchange data clearly correlate the state of economic prosperity. This trend seems quite likely to continue given the shining economic forecast of the country and the continued presence of the Singh government in power. As 2009 winds down, the data will likely show that India has continued on its path of economic stability, in the face of global economic distress. These factors bode well for the long-term outlook of the economy of India.
The Reserve Bank of India. (2009) Current statistics: Trade and
balance of payments. In RBI bulletin. Retrieved from