Role of Foreign Capital and Aid in Economic Development of India

Authors: Anil Kumar

Country: India

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Abstract: Foreign capital can enter a country in the form of private capital and/or public capital. Private foreign capital may take the form of direct and indirect investments. Direct investment means that the concerns of the investing country exercise de facto or de jure control over the assets created in the capital importing country by means of that investment. Direct investments may take many forms: The formation in the capital importing country of a subsidiary of a company of the investing country; the formation of a concern in which a company of the investing country has a majority holding; the formation in the capital importing county of a company financed exclusively by the present concern situated in the investing country; setting up a corporation in the investing country for the specific purpose of operating in the other concerns; or the creation of fixed assets in the other country by the nationals of the investing country. Such companies or concerns are known as transnational corporations (TNCs) or multinational corporations (MNCs).

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Paper Id: 1633

Published On: 2015-07-21

Published In: Volume 3, Issue 4, July-August 2015

Cite This: Role of Foreign Capital and Aid in Economic Development of India - Anil Kumar - IJIRMPS Volume 3, Issue 4, July-August 2015.

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