Abstract: The role of FDI in the growth process has been a burning topic of debate in several countries including India. Investment provides the base and pre-requisite for economic growth and development. Apart from a nation’s foreign exchange reserves, exports, government’s revenue, financial position, available supply of domestic savings, magnitude and quality of foreign investment are necessary for the well being of a country. Economic growth - This is one of the major sectors, which is enormously benefited from foreign direct investment. A remarkable inflow of FDI in various industrial units in India has boosted the economic life of country. This study is entirely based on secondary data. The present study is limited to assess the determinants of Foreign Direct Investment flows and its impact on Indian economy. For this purpose empirical data are estimated for the period 1995 to 2014. We conclude that there is significant effect of FDI on India’s economic Growth FDI can help to raise the output, production and export at the sectoral level of the Indian economy. The study tries to find out how FDI seen as an important economic catalyst of Indian economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfers. The main purpose of the study is to investigate the impact of FDI on economic growth in India.
Keywords: FDI; Economic Growth; GDP; Economic Indicator.
Title: FDI and Indian Economic Growth Factors - An Empirical Analysis-2014
Author: MAHESH KUMAR M
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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