Financial decision making and Foreign Direct Investment in the era of COVID-19 and beyond: Evidence from India

ABSTRACT

Foreign Direct Investment (FDI) plays an imperative role for the growth of the business sector and contributes to a significant level towards economic growth. It facilitates flow of funds towards poor and developing countries to establish business units, to raise their production capacity and to offer ample employment opportunities to unemployed youth, to raise labor skills by transfer of technology and managerial know-how, thereby FDI tries to assimilate domestic economy with the global economy. But because of COVID-19, there is a massive setback for various countries in attracting FDI, India is not an exception to it. The present study tries to critically analyze the impact of ongoing pandemic on FDI inflows in India. Thus, an attempt has been made in this study to ascertain the impact of COVID-19 on FDI in India and make recommendations to attract more FDI.