A Study of Foreign Direct Investment & Its Impact on Indian Economy

Author: Mukesh Kumar Jain

Abstract:
FDI plays a vital role for economic development of any developing country. The importance of FDI in India has increased significantly over the last two decades. FDI serves as a link between investment and saving. Many developing countries like India, are facing the deficit of savings. This problem can be solved with the help of Foreign Direct Investment. Foreign investment helps in reducing the defect of BOP and provides the base and pre requisite for rapid GDP growth. This study is entirely based on the secondary data. It is based on published annual reports for the period 2004-05 to 2018-19 of NSE, BSE, SEBI, and RBI. We have used Statistical formulas mainly correlation and linear regression analysis has been used to get the result. We conclude that there is significant effect of FDI on India’s GDP.

Keywords:FDI, Economic Development, GDP.

DOI:

International Journal of Trade & Commerce (Vol: 8 Issue:2)