Investment Opportunities and Challenges in Tamil Nadu for Industrial Development- An Assessment
Listin P T1, D Ilangovan2
1Listin P T, Ph.D Scholar, Department of Commerce, Annamalai University, (Tamil Nadu), India.
2Dr. D Ilangovan, Professor and Head, Department of Commerce, Annamalai University, (Tamil Nadu), India.
Manuscript received on 17 September 2019 | Revised Manuscript received on 04 October 2019 | Manuscript Published on 11 October 2019 | PP: 170-172 | Volume-8 Issue-2S10 September 2019 | Retrieval Number: B10280982S1019/2019©BEIESP | DOI: 10.35940/ijrte.B1028.0982S1019
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In recent years, significant of Foreign Direct Investment has been increasing especially in the developing countries. These countries are trying their level best to attract more and more FDI. Foreign Direct Investment takes place when a company invests directly in the production or marketing of a product in a foreign country.FDI is defined as an investment involving a long term relationship that reflects the long term interest and control of a resident entity in the host country. Industrial investment plays a significant role in the development of a country. Broadly there are two types of foreign investment viz., foreign direct investment and portfolio investment. The developments are easily possible through Foreign Direct Investment (FDI) because it helps to bring close the different economies of the world by investing capital in a country. Capital formation is an important determinant of economic growth. While domestic investments add to the capital stock in an economy, FDI plays a complementary role in overall capital formation and filling up the gap between domestic savings and investment. Foreign investment plays an important role in the long term economic development by augmenting availability of capital, enhancing competitiveness domestic economy through transfer of technology, strengthening infrastructure, raising productivity, generating new employment opportunities and boosting exports. The Government has implemented several reforms in recent years to attract more FDIs. These include improving infrastructure, revising the law on the land acquisition, reforming labour law and rationalizing the process of obtaining environmental clearances. In this article researcher focused on industrial opportunities and challenges in Tamil Nadu for industrial development of the state.
Keywords: Industry, FDI, Portfolio Investment, Domestic Investment.
Scope of the Article: Industrial Engineering