Last Updated on February 12, 2025 by Rakshitha

Impact of foreign direct investment on growth of Indian economy

Impact of foreign direct investment on growth of Indian economy has become an important part of the growth and development of countries around the world, including India’s, in the last few decades. The goal of this study is to find out what effect that has on the growth of the Indian economy. 9 foreign direct investment (FDI) advantages in India. The goals of studying how foreign direct investment affects the growth of the Indian economy. and you can get our free study material with more information and insights by downloading it.

Economic factors and foreign direct investment time-series data are used for quantitative analysis. Government publications, international databases, and academic studies are dependable. Regression analysis can reveal how FDI affects the Indian economy. The association between FDI inflows and Indian economic development was favorable and statistically significant. Investment money, technology, management skills, and global market access drive economic development. According to the research, FDI in India has enhanced GDP, job creation, and exports.

The report also documents FDI’s ripple effects on India’s economy. FDI has simplified information exchange and increased innovation and productivity across numerous industries. Homegrown investment, competition, and local-international business links have boosted productivity and competitiveness.

As to the report, FDI benefits the Indian economy. Growth, employment, exports, and technology are boosted by FDI. To maximize advantages and address issues, foreign direct investment (FDI) inflows must be attracted and managed. This data may help policymakers and stakeholders boost investment and FDI for India’s economic development.

A brief look at foreign direct investment (FDI)

International investment helps countries grow. Foreign direct investment (FDI) has helped India’s economy in many ways. This study looks into FDI and the growth of India’s economy. Recently, India has gotten more FDI. Allowing businesses to grow, keeping the economy open, and having a big local market all help. Innovation, technology, good management, and global markets all help growth and make businesses more competitive.

The study says that FDI affects GDP, job development, foreign marketing, technology, and economic growth. This study says that FDI helps the Indian economy by transferring technology, leading to new ideas, and helping businesses run more efficiently. The research will use both quantitative and qualitative methods. Using regression analysis, we will look at FDI trade data and economic factors that affect them to see how FDI affects the Indian economy. A detailed analysis of scholarly books and case studies will be done to understand FDI and economic growth.

Display how FDI has helped India’s economy in this research. Foreign direct investment (FDI) investments, creates jobs, and boosts efficiency to raise GDP. Incoming foreign direct investment (FDI) could help the balance of payments and export earnings. Foreign direct investment (FDI) could provide the Indian economy with surprising benefits. This could make local businesses more competitive by boosting science, creativity, and the sharing of information. Foreign direct investment (FDI) risks include economic dependence and misuse. Law and good governance will be studied.

9 foreign direct investment (FDI) advantages in India

1. Economic growth: Boosts GDP and economic development through increased capital flow.

2.  Employment generation: Creates job opportunities and reduces unemployment rates.

3. Technological advancement: Introduces advanced technologies and innovations.

4. Infrastructure development: Enhances infrastructure through investment in various sectors.

5. Increase in exports: Boosts production capacity, leading to higher exports.

6. Access to global markets: Provides entry to international markets and global supply chains.

7. Skill development: Improves workforce skills through training and exposure to international practices.

8. Competitive business environment: Encourages domestic companies to improve efficiency and competitiveness.

9. Government revenue: Increases tax revenues through corporate taxes and duties.

The goals of studying how foreign direct investment affects the growth of the Indian economy

• Analyze how FDI inflows affect Indian GDP growth. FDI boosts GDP growth, investment, and productivity.
• Examine how FDI affects Indian employment. FDI inflows affect new venture investment and industry growth, creating employment.
• Assess how FDI promotes Indian exports. Assess how FDI boosts exports, technology transfer, and market access, improving the balance of payments.
• Tech FDI. Assess how FDI transfers technology, skills, and advanced manufacturing processes to increase competitiveness and productivity.

Why foreign direct investment is important for the growth of the Indian economy

More research on FDI’s effects on the Indian economy helps explain how it influences other economic aspects. The literature assessment reveals that FDI boosts India’s GDP, employment growth, trade, technology, and industry. Evidence suggests FDI boosted India’s GDP. FDI boosts expenditure, production, and knowledge exchange, boosting economic development. Promotes local information, housing investment, and small enterprises.

Job creation from FDI boosts India’s economy. New and larger enterprises created by FDI generate employment. FDI brings cutting-edge management and technology, improving skills and employment. Indian commodities expand via international trade. Technology transfer, market access, and a broad variety of commodities increase exports. Backward ties to local suppliers make exporters more competitive.

FDI improves innovation and technology. FDI improves India’s management, technology, and R&D. Local ingenuity, home business success, and an information-based economy are growing. Foreign direct investment (FDI) boosts the economy and generates employment. Infrastructure, industry, services (IT and telecommunications), and infrastructure attract FDI. FDI has perks and downsides. Economics, abuse, decent governance, and morality are examples. Balancing national interests, FDI advantages, and long-term prosperity is key.

Foreign direct investment boosts India’s economy, data indicate. Foreign direct investment boosts GDP, commerce, employment, and technology. These findings demonstrate the importance of attracting foreign direct investment (FDI) and ensuring that the correct laws and regulations are in place to maximize its advantages and limit its drawbacks. Policymakers and other interested parties might utilize these insights to stimulate investment, attract targeted foreign direct investment, and improve India’s economy for everyone.

Video demonstration

view on YouTube videos

Pay and Download Report Now

Please use the link below for international payments.

Pay and Download Report Now

Checkout our full MBA project Report topics in Marketing