MPACT OF FDI:IN ECONOMIC GROWTH OF INDIA

Abstract

v ABSTRACT: This study examines at the association: between India's: economic: growth from 1991 to 2022 and foreign direct: investment (FDI). Based on time-series analysis, the study concludes that FDI and important economic indicators have a moderately significant relationship, with correlation coefficients hanging around 0.36. According to regression analysis, FDI only accounts for 13–17% of changes in GDP and GNI, suggesting that although FDI is a growth driver, other factors have a greater impact. Large variations in FDI patterns are found in the study, especially between the mid-2000s and 2022. Suggestions are to adopt an integrated growth approach, enhance FDI quality, streamline regulations, and strengthen connections between foreign investment and local industries.