Foreign Direct Investment and Its Impact on India's Economic Growth - A Study from 2014 to 2024
Dr B. Nageswar Rao
Assistant Professor of Economics, Government Degree College, Yellandu, Bhadradri Kothagudem District, Telangana State
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http://doi.org/10.37648/ijps.v19i01.023
Abstract
Foreign Direct Investment denotes the ownership interest in a foreign enterprise or project held by a government, corporation, or investor from a different nation. Foreign Direct Investment (FDI) refers to the strategic choice to obtain a significant equity interest in a foreign enterprise or to wholly acquire it in order to broaden operations in a new geographical area. The year 1991 marked the beginning of economic liberalization in India, and since then, Foreign Direct Investment (FDI) has been an essential source of capital. India is currently in the top spot for greenfield foreign direct investment (FDI) and provides an automatic investment channel. Additionally, regulations under FEMA ensure transparency. India's infrastructure, employment, and technology have all benefited greatly from foreign direct investment, which has been a key factor in the country's economic progress. The country of India has recently attracted a large influx of foreign direct investment (FDI). The government has liberalized foreign direct investment (FDI) standards in many industries and instituted programs like "Make in India" to attract investment. This study delves into the effects of foreign direct investment (FDI) on India's economic growth, shedding light on the positives, cons, and potential outcomes of this phenomenon. This study examines the impact of Foreign Direct Investment (FDI) on India's economic growth from 2014 to 2024. Over the decade, FDI inflows into India have surged, crossing the $1 trillion milestone, with a notable 119% increase between 2014-2024 compared to the preceding decade. The service sector attracted the highest FDI equity inflow, amounting to $115.18 billion.
Keywords:
FDI; FEMA; Economic Growth; FDI Inflows; Infrastructure; Make in India
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