A Study on Trend of FDI in India and its impact on Indian GDP

Dr. Minti Sinha

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Published: May 17, 2021

Keywords:

Foreign Direct Investment , GDP, Economic Growth , Trend of FDI

Dr. Minti Sinha

Abstract

Foreign Direct Investments help in boosting the growth of Indian economy. India has witnessed a growth in the flow of Foreign Direct investment , Since the introduction of liberalisation policy in India in 1991 and other policy reforms in India.The objective of this study is to analyse the trend of FDI in India and to analyse the impact of FDI on Indian GDP during 2014 -15 to 2018 -19. In this study Secondary data was used to analyse the trend of FDI in India and to analyse the impact of FDI on Indian GDP.The data has been retrieved from Reserve Bank of India ( RBI ) website FDI has increased in India after the launch of Make in India. FDI inflow was US $45.1 bn in the year 2014 -15 increased to US $64.3 bn in the year 2018 -19. Thus the FDI inflows increased by 42.57 %. Thus it shows the increasing positive trend from 2014 to 2019. In this it is found that FDI as percentage of GDP was highest in the year 2014 -15 i.e. 3.062 % and lower in the year 2018 -19 i.e. 1.116 %. Which shows that after 2014 -15 there was a fall in the FDI as a percentage of GDP.

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Vol. 58 No. 5 (2021): Vol. 58 No. 5 (2021)

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