Shila Mishra Impact of FDI on Socio-economic Development of a host country- a case of India Экономика и предпринимательство, № 4 (ч.1), 2016 г. 105 Impact of FDI on Socio-economic Development of a host country- a case of India Shila Mishra, аспирантка, экономический факультет, Российский университет дружбы народов, РУДН (117198 Москва, ул.Миклухо-Маклая 6; e-mail: Shila.mishra11@gmail.com) Аннотация. Влияние ПИИ на развитие принимающей страны остается одним из основных спосо- бов обеспечения занятости и обмен технологиями, включая социальное и экономическое развитие. Однако страна улучшает свое экономическое положение, но социальное развитие происходит не в той же степени, что экономическое. В данной статье автор анализирует влияние ПИИ на социальное и экономическое развитие Индии. Правительство Индии должно применять жесткую антикоррупцион- ную политику для достижения равенства, чтобы стимулировать социальное развитие. Abstract. The impact of FDI on development of a host country remain the one of the most important issue though FDI provides employment and technology transfer. In the word development the article include social and economic development. However country improve economic condition but social improvement are not in the same ratio of the economic. In this paper author has mentioned India’s social and economic development impact- ed by FDI. The government of India should apply policy strictly for anti-corruption and to reach equality to boost the social development. Ключевые слова: социально-экономическое развитие Индии, прямые иностранные инвестиции, экономический рост, социальное развитие. Keywords: social economic development of India, FDI. Economic growth, social development. Introduction Foreign Direct Investment (FDI) is known as investment for long term by in both ways either ac- quisition or creation of capital assets to host country through foreign country. Now a days, FDI mostly used in both developed and developing countries by Multinational Corporation (MNCs) to fulfill the two main goal one is to maximize global profit and other to get the long term stability by reducing risks. In developing countries, FDI became an important segment of outward capital flows, mainly since early 1990s, investing a large number of national gross investment. According to the Organization of Eco- nomic Co-operation Development (OECD), 2013, FDI is an essential component for international eco- nomic integration which can conduct economic de- velopment in long term. FDI creates networks of international marketing supply effects of spill-over for example technological transfer, indirect knowledge, innovation and managerial skillsets to the host country. According to United Nations Commission on Environment and Development in 1987; “Develop- ment is considered sustainable if it meets the needs of the present without compromising the ability of further generations 1 1 Vargas Murgui, Monica, and Rosella Nicolini. "Desk-study on the impact Chinese Foreign Direct Investment (FDI) has in Angola’s socio-economic development." (2014). ” [1]. This definition includes three aspects, that is social, economic and envi- ronment. The center point of this paper is only on the social and economic. Thus, the index applied for the research of India’s development are GDP growth, literacy, poverty and inequality rate, em- ployment rate, and corruption rate among others. To promote socio-economic development of a nation, the role of FDI is an interesting and useful topic for discussion. This article focus to analyses of social and economic development of India. In development, FDI has shown an effective instrument to create assets and develop the economy of the host coun- try. FDI is rapidly going to developing countries which provide to reach development. This paper centralized on FDI and development. The paper deem to reply the research question “does FDI bring social-economic development?” by analyzing the top seventh host country for FDI in 2015 worth $59 billion, India (UN trade agency 2016). The paper is based on external secondary data and scientific economic literature. The data have been obtained from different sources such as CIA world fact book, UNCTAD, World Bank, UNSCO more over from some newspapers like Times of India, Economics time etc. This goal is reached in the article through analysis of FDI in In- dia and some socio-economic indicator for instance- GDP, life expectance, literacy, corruption, unem- ployment, poverty and inequality of India. FDI in India Republic of India located in South Asia which is 7 th largest country by area and the 2 nd most popu- lous country after China having more than 1.25 bil- lion people. Indian economy has accepted foreign companies to invest since liberalization in early 1990s, people in India have adopted global skills smartly. Some Indian from village area based on village farming, advanced agriculture and handi- crafts and other enjoy their profession on board ar- ea of modern industries and a mass of services 2 2 CIA world fact book, Web- https://www.cia.gov/library/publications/the-world- factbook/geos/in.html [2]. Thus, India is attracting international investments to wide area of industries with the help of supportive government and the great source of manpower mostly youth workforce.