FLOWS AND IMPACT OF FOREIGN DIRECT INVESTMENTS IN DEVELOPING COUNTRIES.

Foreign direct investment provide an inflow of foreign capital and funds, investment in addition to increases in the transfer of skills, technology and job oppurtunities.Foreign investment in India is announced by government of India name as FEMA (Foreign exchange management act).The Government's liberalization and economic reforms program was initiated in July 1991 under the new Industrial Policy Resolution. The Industrial policy reforms have substantially reduced the industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and Foreign Direct Investment. The main objective of this research paper is to know about the flows and impact of Foreign Direct Investment in India. The impact of Foreign direct investment on India is 51%.The decision to hold back Foreign direct Investment in Multi brand retail will have strong impact on the domestic and foreign investor segment. The current market situation in India on retail sector is one of the pillars of its economy an account for about 15% GDP(Gross domestic Product).The Retail market estimated to be US $450billion.India already allow Foreign direct investment in Cold Chain Infrastructure to the extent of 100%.India as the second most FDI destination after China for transnational corporations during 2010-2012. The sectors which attracted higher inflows were services, telecommunication, construction activities.FDI equity inflows in India during 2011-2012(Upto January 2012 122,307crore in us $26,192 million. The growth rate was 92%