An Analytical Study of Foreign Direct Investment (FDI) & Its Impact on Indian Gross Domestic Product (GDP)

Author:Mohd Mohsin Qureshia*, S.K.S. Yadavb

Abstract:
Foreign direct investment is essential for the economic progress of any emerging country. Over the past two decades, FDI has been increasingly prominent in India. Investment and saving are connected by FDI. Many developing nations, like India, are experiencing a savings shortage. Foreign Direct Investment can assist in the solution to this issue. Foreign investment contributes to lowering the BOP flaw and provides the foundation and prerequisite for accelerated GDP development. The secondary data serve as the sole foundation for this investigation. It is based on publicly available annual reports from the NSE, BSE, SEBI, and RBI for the 10 years from 2012-13 to 2021-22. The results were obtained using statistical methods, primarily correlation and linear regression analysis. Our analysis leads us to the conclusion that FDI significantly affects India's GDP.

Keywords:Key Words: Foreign Direct Investment (FDI), Economic Development, Gross Domestic Product (GDP).

DOI:10.46333/ijtc/11/2/5

International Journal of Trade & Commerce (Vol: 11 Issue:2)