A STUDY OF FDI AND ITS IMPACT ON INDIAN ECONOMY

Rakesh  Ramswarup  Bajpai

Volume : VI, Issue : I, January - 2016

A STUDY OF FDI AND ITS IMPACT ON INDIAN ECONOMY

Rakesh Ramswarup Bajpai

Abstract :

In the last two decades, FDI showed the most remarkable growth rate in the global economic landscape. Such an unprecedented growth makes FDI an important and vital component of development strategy in both developed & developing nations. Economic growth variables indicates the nature of inflows during 2000–2015.To analyze important dimensions of FDI in India impacting economic growth of India. It is observed from the results of above analysis that Trade GDP, Reserves GDP, Exchange rate are the main factors affecting FDI inflows in India. The results of foreign Direct Investment Model reveal that Trade GDP, Reserves GDP, and FIN. Position variables exhibit a positive relationship (pull factors) with FDI while Exchange rate exhibits a negative relationship (restrictive forces) with FDI inflows. The study reveals that FDI is a significant factor influencing the level of economic growth in India.