Impact of FDI in service sector with special reference to insurance and banking sector in India An analytical study

Abstract

Foreign Direct Investment (FDI) is an investment made by an Individual of the Company newlineof another country in the business of one country either in the form of controlling interest newlineor ownership. The main objective of FDI is to acquire notable influence and effective newlinecontrol over the management of the company or enterprise. FDI as a powerful instrument newlinethat accelerates the economic growth of a country and plays a significant or remarkable newlinerole in the growth dynamics of the host country. FDI is encouraged to avail of the newlinebenefits of technical expertise, low cost of production, and helps in transferring skills, newlineknowledge, and technology among the countries. Foreign Direct Investment is an newlineindispensable factor for the economic prospers of a developing country like India. It is newlinehighly experienced that FDI in the form of source of capital has a long term impact in newlineterms of enhanced competitiveness, Strengthened infrastructure, updated technology, newlineProductivity, and Strong employment opportunity, etc. Along with long term sources of newlinecapital, FDI provides advanced updated technology, best global management practice, newlinetransfer of new technology, better efficiency, and intellectual property. Bringing many newlinethings at a time, it increases production, exports and increased tax revenues, in turn, helps newlineGovt. Foreign Direct Investment as seen as an important source of non-debt inflows and newlineis increasingly being sought as a vehicle for technology flows and as a means of attaining newlinecompetitive efficiency by creating a meaningful network of global interconnections. newlineIndian Banking and Insurance sector play a promising role in the development of foreign newlineexchange systems as well provides strength and stability to Indian economic conditions. newlineAfter the introduction of FDI into the Insurance sector of India, there was a remarkable newlinegrowth in this sector which was witnesses in terms of registered insurers, amount of newlineGross written premium, expanded Penetration, Density, Investment amount, Settlement newlineof disputes, opening of