The Dynamics of FPI and FDI in Indian Economy : A Correlational Study

Author(s)	Neelam Soni, Prof. Dr. Mahendra Kumar
Country	India
Abstract	Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI) play distinct yet complementary roles in India's economic development. FPI is short-term and volatile, enhancing liquidity in financial markets, while FDI is long-term and supports sustainable growth through capital formation, technology transfer, and employment generation. Despite their individual contributions, FPI and FDI operate independently, driven by different factors. Policymakers must adopt differentiated approaches: FPI can be promoted through market stability and regulatory transparency, whereas FDI requires structural reforms and an investment-friendly environment. This paper also suggests directions for future research, focusing on sector-specific impacts, the influence of policy changes, and the role of macroeconomic conditions in shaping these investment inflows.
Keywords	FPI, ADR, FCCB, Correlation Analysis
Published In	Volume 6, Issue 6, November-December 2024
Published On	2024-11-16
Cite This	The Dynamics of FPI and FDI in Indian Economy : A Correlational Study - Neelam Soni, Prof. Dr. Mahendra Kumar - IJFMR Volume 6, Issue 6, November-December 2024. DOI 10.36948/ijfmr.2024.v06i06.30552
DOI	https://doi.org/10.36948/ijfmr.2024.v06i06.30552
Short DOI	https://doi.org/g8rd3z

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