FDI inflows help to improve a country's balance of payments by bringing in foreign exchange and reducing the need for imports.

The services sector, including IT, telecommunications, and financial services, has consistently attracted the largest share of FDI inflows in India.

FDI can contribute to economic growth through various channels, including increasing exports, promoting domestic investment, and generating employment.

The increase in FDI inflows to India after 1991 can be attributed to a combination of factors, including relaxation of FDI regulations, privatization of public sector enterprises, and improved infrastructure.

While FDI can create new jobs, it can also lead to job losses in certain sectors due to increased competition and technological changes.

Globalization refers to the process of integrating a country's economy with the global economy through trade, investment, and technology.

The Automatic Route allows foreign companies to invest in India without prior approval from the government.

The FIPB is responsible for regulating foreign investment in sensitive sectors such as defense, telecommunications, and media.

Foreign investment in the retail sector in India has been largely restricted to single-brand retail.

Deregulation refers to the process of reducing government control over an economy by removing regulations and restrictions.

The FDI Policy allowed foreign companies to invest up to 51% in the telecommunications sector.

Privatization refers to the process of selling government-owned assets to private entities.

The FDI Policy allowed foreign companies to invest up to 100% in the manufacturing sector.

Liberalization refers to the process of reducing government involvement in the economy by removing restrictions and regulations.

The FDI Policy allowed foreign companies to invest up to 74% in the civil aviation sector.