FDI is a valuable source of foreign capital (money). It is required for economic development of any country. India needs FDI even more. She has her own sources of capital. But that is not enough. Her rapid growth requires more capital.
FDI to our country comes from many advanced economies – the USA, UK, France, Japan or even our Asian neighbors – South Korea, China, etc.
FDI helps modernizing India’s economy. Along with money, it brings foreign technology to upgrade our knowledge and skills. It encourages domestic businessmen and industry to invest more. All these help economic activities; creation of new jobs; and improving our living standards.