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Abstract

Arena of foreign investments and their impact on host country has received much attention of researchers due to its rising importance in the economic development. Not only does it enhance financial stability of firms, it also brings in expertise which can help to achieve efficiency in business. Hence, the growth of foreign investment is important to track. This is the primary objective of this study. We examine the trend of FII and FDI growth in India over a period of eighteen years from 2000-01 to 2018-19. Results are encouraging as we witness an increasing trend in FDI over the period under consideration. On the contrary, flows of FII seem to follow a random pattern. Results also provide an indication towards a positive net investment figure over the years. However, there seems no fixed proportion of total foreign portfolio investment when we segregate it into equity and debt component.

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