Financial performance of FDI based companies is superior than non-FDI based companies in food, agriculture, textile, pharmaceutical, construction and metal sector in India

Abstract

Capital not only play very important role for the development of any economy but it is a life blood of any economic activity and in the absence of capital no economic activity can be performing. Capital can be arranged with in the country or from outside the country which is known as foreign investment. There are many research carried out to analyse financial performance of FDI based companies is superior than Non FDI based companies. The present study is made an attempt to make comparative analysis between FDI based companies and Non FDI based companies in Food and Agriculture Sector, Textile Sector, Pharmaceutical Sector, Construction Sector and Metal Sector in India by using panel data from 2007 to 2016. The result shows that in Food, Agriculture & Pharmaceutical Sector, financial performance of FDI based companies and Non FDI based companies are almost same where as in Textile, Construction & Metal Sector the financial performance of FDI based companies is superior then Non FDI based companies.