6.

CONCLUSION:
For objective 1:
The process of economic reforms which was initiated in July 2000 to liberalize and
globalize the economy had gradually opened up many sectors of its economy for the
foreign investors. A large number of changes that were introduced in the country’s
regulatory economic policies heralded the liberalization era of the FDI policy regime
in India and brought about a structural breakthrough in the volume of the FDI inflows
into the economy maintained a fluctuating and unsteady trend during the study period.
It might be of interest to note that more than 50% of the total FDI inflows received by
India during the period from 2000-2014 came from Mauritius and the USA. The main
reason for higher levels of investment from Mauritius was that the fact that India
entered into a double taxation avoidance agreement (DTAA) with Mauritius were
protected from taxation in India. Among the different sectors, the electrical and
equipment had received the larger proportion followed by service sector and
telecommunication sector.
For objective 2:
According to findings and results, I concluded that FII did have high significant
impact on the Indian capital market. Therefore, the alternate hypothesis is accepted.
S&P CNX NIFTY, BANK NIFTY, CNX NIFTY JUNIOR, S&P CNX 500 showed
positive correlation but CNX 100, CNX IT showed negative correlation with FII.
Also the degree of relation was high in all the case. It shows high degree of linear
relation between FII and stock index. This shows that there is relationship between
them. One of the reasons for high degree of any linear relation can also be due to the
sample data. The data was taken on monthly basis. The data on daily basis can give
more positive results (maybe). Also FII is not the only factor affecting the stock
indices. There are other major factors that influence the bourses in the stock market. I
also analyzed that FII had significant impact on the stock index for the period starting
from January 2000 to March 2014. The sample data available for other indices like
BANK NIFTY, CNX 100, S&P CNX 500 was low with just 51, 87 and 94
respectively observations that have also hampered the results.
OTHER CONCLUSIONS
The above analysis of Trends and Patterns of FDI inflows reveals the following facts:-
􀂙 FDI has gained momentum in the economic landscape of world economies in the
last three decades. It had outpaced almost all other economic indicators of
economic transactions worldwide.
􀂙 FDI is considered as the safest type of external finance both by the developed and
developing nations. So, there is growing competition among the countries in
receiving maximum inward FDI.
􀂙 Trends in world FDI inflows shows that maximum percentage of global FDI is
vested with the developed nation. But in the last two decades, developing
countries by receiving 40% of global FDI in 1997 as against 26% in 1980 make
waves in the economics of developed nations.
􀂙 Among developing nations of the world, the emerging economies of the Asian
continent are receiving maximum share (16%) of FDI inflows as against other
emerging countries of Latin America (8.7%) and Africa (2%).
􀂙 In the last two decades, India has significantly increased its share of world FDI
from 0.7%