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Importance of Foreign InvestmentInvesting in a country by individuals andorganizations from other countries is known asinternational investment. Economicdevelopment depends on it. Growing economieslike India and China have high populations,making economic growth the only sustainablemeans of raising living standards. As moreinputs are brought into the production process,investment advances economic growth.In the current international economic setup where countries progress towardsglobalization, foreign capital is indispensableand caters to the large requirements of capitalfor the economic development. This form ofcapital flows are usually welcomed bydeveloping countries for the reason that theyadd to the total investible resourcescountry. It also acts as a vehicle for the transferof technology and management. In these daystechnology is very much required for the rapideconomic development. Foreign investment isbecoming more important in developingcountries.