ANALYSIS OF FOREIGN DIRECT INVESTMENT INFLOW TRENDS IN THE MANUFACTURING SECTOR OF INDIA

This paper analyses the trends in the Foreign Direct Investment (FDI) inflows into various sub-sectors of the manufacturing sector of India. It also brings out the chronological sequence of opening up of various sectors of the Indian economy for FDI. The manufacturing sector attracted significant amount of FDI in the past fifteen years of which a major chunk accrued to technology intensive sectors, while the labour intensive ones received negligible inflows. Labour intensive sectors, especially, food processing sector, leather sector and textile sector has a huge potential for growth and contribution to the overall health of the manufacturing sector. These sectors also have the maximum capability to generate employment opportunities. Active government intervention through supportive policies is imperative in this regard.