5 Advantages of Foreign Direct Investment in India
                     5 Advantages of Foreign 
Direct Investment in India
1. EMPLOYMENT
● The disguised unemployment in the secondary sector is the major crisis Indian 
skilled or unskilled labour is facing, foreign investments prove themselves.
● FDI has boosted  job- creation and increased job options leads to increased income 
which ultimately leads to an increase in the expansion of the Indian Economy.
2. HUMAN CAPITAL
● Human Capital refers to the talents and brainpower in the form of the human 
resource of a country. 
● India is fortunate enough to have a great human resource in the way of its youth. 
Lack of education, skill development and job opportunities mar such resources.
● FDI in India bridges the gap between social capital and better job options.
3. STABLE EXCHANGE RATE
● The foreign exchange in India has improved drastically with the inflow of 
Foreign Investments. Hence, the central bank of India maintains a stock of 
several international exchanges in bulk. 
● This stabilises the exchange rate thereby building a stable foreign monetary 
policy.
4. ADVANCEMENT OF BUSINESS AND TECHNOLOGY
● The state, businesses or firms receiving FDI in India are given access to a vast 
horizon of open markets and trade in any part of the world.
● These foreign companies provide all the modernised tools and technologies along 
with modern financial techniques for the all-round profit of the business.
5. ECONOMIC GROWTH
● Apart from generating jobs and better financial conditions, foreign investment is 
also a significant source of revenue collection in India.
● Whenever a company launches a new tie-up or opens a new hub in the Indian 
Market, a large portion of its profit is deducted as a revenue. Hence, the external 
capital inflow is increased, and the Indian Economy grows.
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