Environmental Impacts of Foreign Direct Investment in Mining Sector in India

Foreign Direct Investment has gained huge importance in developing countries in past few decades. The positive benefits of FDI to the receiving host country include capital, skill and technology transfer, market access and export promotion (Acharyya, 2009). However, it also brings along with it negative cost for the host country. Mining sector in India is growing at a fast pace and is a sector crucial for India’s economic growth. The result is that the present day society, especially in emerging economies like India and China is crucially dependent on the minerals industry for sustained economic progress that will alleviate poverty and improve the quality of life. (Sustainable Development Emerging Issues in India’s Mineral Sector, 2012). The present study tries to evaluate the environmental impacts of foreign direct investment in mining sector in India using the secondary data.