A study on Impact of FDI inflows on the Revenues and Profits of Host companies in India

Abstract

FDI is vital for any country’s Economic Development. Foreign capital brought into domestic companies provides an increase in the productivity of the Domestic companies. The objective of the paper is to analyse the impact of FDI on the trends of automobile industry in terms of revenues, profits and production. The methodology applied for the study is descriptive and tool applied for the study is correlation .The findings show that that there exists a negative correlation of FDI in relation to revenue and expenditure to the extent of 0.766 in revenue indicating there is growth in India`s automobile sector due to the flow of FDI.