industries such as, Services, Automobile, Infrastructural development, Telecommunications, Computer Software & Hardware, Chemicals and Electricals have attracted the highest amount of FDI. Computer Software & Hardware alone has attracted the highest amount of 255 crore American Dollars. Among the Countries that have invested in India, Mauritius, Singapore, Netherland, and America are on the top of the list of investors in India. In 2014-15, the FDI in India was amounted 3,093 crore American Dollars that showed the growth of 27% comparing the previous year 2013-14. It has been evidenced that the FDI in India shows steady growth year after year. FDI in India brings greater benefits to India. The benefits of FDI for India are, Employment Opportunities, Industrial Growth, Sharing of Technological advancements, etc. Since, the Central Government of India has determined to attract more FDI into India, it has liberalized and increased the ceiling of Investment in the Industries of Insurance, Defence and Medical Equipments. This paper has attempted to study the determinants of FDI in India from Indians’ perspective. The main objective of this paper is to interpret the factors that influence the foreign investors to invest in India from the host country’s view point. The survey was carried only in a few Indian companies of select sectors covering limited areas. A firm becomes multinational mainly for three reasons. They are Ownership advantages, Location-specific advantages and Internalization. In this study, the focus is on the location-specific advantages of the host country as determinants of FDI in order to account for the geographical distribution of FDI inflows across transition economies. Higher economic growth of India has been identified to be the primary reason for foreign direct investors to invest in India. The major findings of the study are, such as, local specific advantage is the reason for an Indian company to become a multinational company, the flow of FDI is more in Bihar and Uttar Pradesh comparing to other states of India, economic risk is the most significant risk that is involved in Indian FDI, increase in employment opportunities is the greatest advantage of FDI in India, the greatest disadvantage of FDI is its negative impact on local markets.industries such as, Services, Automobile, Infrastructural development, Telecommunications, Computer Software & Hardware, Chemicals and Electricals have attracted the highest amount of FDI. Computer Software & Hardware alone has attracted the highest amount of 255 crore American Dollars. Among the Countries that have invested in India, Mauritius, Singapore, Netherland, and America are on the top of the list of investors in India. In 2014-15, the FDI in India was amounted 3,093 crore American Dollars that showed the growth of 27% comparing the previous year 2013-14. It has been evidenced that the FDI in India shows steady growth year after year. FDI in India brings greater benefits to India. The benefits of FDI for India are, Employment Opportunities, Industrial Growth, Sharing of Technological advancements, etc. Since, the Central Government of India has determined to attract more FDI into India, it has liberalized and increased the ceiling of Investment in the Industries of Insurance, Defence and Medical Equipments. This paper has attempted to study the determinants of FDI in India from Indians’ perspective. The main objective of this paper is to interpret the factors that influence the foreign investors to invest in India from the host country’s view point. The survey was carried only in a few Indian companies of select sectors covering limited areas. A firm becomes multinational mainly for three reasons. They are Ownership advantages, Location-specific advantages and Internalization. In this study, the focus is on the location-specific advantages of the host country as determinants of FDI in order to account for the geographical distribution of FDI inflows across transition economies. Higher economic growth of India has been identified to be the primary reason for foreign direct investors to invest in India. The major findings of the study are, such as, local specific advantage is the reason for an Indian company to become a multinational company, the flow of FDI is more in Bihar and Uttar Pradesh comparing to other states of India, economic risk is the most significant risk that is involved in Indian FDI, increase in employment opportunities is the greatest advantage of FDI in India, the greatest disadvantage of FDI is its negative impact on local markets
Key-words: FDI, Transnational Corporations, Location-Specific Advantages.
