Foreign Direct Investment (FDI) is type of investment that involves injection of funds into a business by an investor from another country. Sometimes when domestically available capital falls insufficient for overall development of the country, foreign capital is seen as a way of filling in gaps between domestic savings & investment. This foreign capital plays an integral role in the development of the country. FDI brings an influx of wealth into a country, generate additional tax revenue, open avenues of new jobs. Depending on flow of investment, FDI is generally classified as outward FDI and inward FDI.
Inward FDI is direct investment made by non-resident investors in the reporting country / economy and; Outward FDI is the value of direct investment made by the residents of the reporting country to external countries.
In this research paper we have focused on analysing on how investment scenario has changed over the years. As a part of the research, we have analysed current situation of FDI, supportive policies, incentives and initiatives taken by the government of Japan to promote FDI and various sectors/ industries which received maximum FDI in past years.
Global perspective about investment in Japan. Detailed analysis of relationship between Japan and India and their growing business transactions.
