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Greenfield Investments: An Economic and Financial Key Driver for India’s Growth

Authors: Swastika Tripathi et al.

DOI : 10.18639/MERJ.2019.739951

Section : Review Article

Published Date : Feb 19, 2019

Abstract

Since ages, India has held the flagship of being prosperous, economically viable, financially sound, rich in resources, and diverse in traditional and cultural aspects, yet has never failed to cater to the needs of crores of citizens. The economic factors and flow of financial wherewithal have pushed Indian economy to the brighter side of development. However, the growth aspects led to a significant decrease in the climatic and weather conditions and therefore an urgent need to mend up the environmental issues. Greenfield investments were sought as remedial measure to sustain the issues of environment as well as economic and financial feasibility in the form of investments. Investment is a gizmo for creating wealth by employing funds with an intention of achieving additional income or growth in the value and gets rewarded by return. Foreign direct investment (FDI) is such an investment wherein foreign investors make their funds employable in the foreign-based company either through greenfield investments, brownfield investments, or through portfolio investment. In Indian context, overseas investments can be made either through automatic route or through Reserve Bank of India and Government of India. The highlight of this paper is the significance of greenfield investments in the developmental aspects of Indian economy.


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