31, May 2025

A Study on the Impact of Foreign Direct Investment on Economic Growth in India

Author(s): 1 Dr.S.Karpagalakshmi, 2 Dr.A .Muthusamy

Authors Affiliations:

1 Teaching Assistant, Department of International Business ,Alagappa University, Karaikudi-4

2Professor and Head, Department of International Business, Alagappa University, Karaikudi-4

DOIs:10.2015/IJIRMF/202505049     |     Paper ID: IJIRMF202505049


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Abstract:    Foreign Direct Investment (FDI) is a pivotal driver of economic growth, fostering development and innovation worldwide. Likewise, FDI in India plays an instrumental role in shaping the country's economic landscape. India remains a favored destination for global investors. This study can provide insights into the policy measures required to enhance FDI inflows and their positive impact on economic growth. FDI plays a vital role in stimulating economic development in host countries. Assessing the impact of FDI on Indian economic growth helps understand how foreign investment contributes to various aspects of development, such as increasing capital investment, creating employment opportunities, transferring technology and knowledge, and boosting productivity. The study's focus on sector-wise analysis of FDI provides valuable insights into the specific industries that attract foreign investment. Identifying the sectors with high FDI inflows and their impact on economic growth enables policymakers to prioritize investment. Implement targeted policies to promote growth in those sectors. Comparing the impact of FDI across different countries and sectors provides valuable benchmarks and insights. It provides empirical evidence and quantitative analysis that can further enrich the understanding of the relationship between FDI and Indian economic growth.

   
Key Words: FDI, GDP, Economic Development, UAE.        

Dr.S.Karpagalakshmi, Dr.A .Muthusamy (2025); A Study on the Impact of Foreign Direct Investment on Economic Growth in India, International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-11, Issue-5, Pp.309-315.          Available on –   https://www.ijirmf.com/


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