Abstract
Foreign Direct Investment (FDI) has emerged as a crucial driver of India’s economic growth since liberalization in 1991. This study examines the relationship between FDI inflows and India’s GDP growth from 2000–01 to 2023–24 using correlation, regression, and ANOVA analyses. Findings reveal a strong positive correlation between FDI and GDP growth, with manufacturing and computer services attracting the largest inflows, while sectors like mining and real estate lagged. However, regression results show that FDI’s long-term impact on economic stability remains insignificant, highlighting the need for complementary domestic reforms. The study concludes that while FDI stimulates short-term growth, sustainable development requires sectoral diversification and policy resilience.
The author(s) appreciates all those who participated in the study and helped to facilitate the research process.
The author declared no conflict of interest.
This is an Open Access Research distributed under the terms of the Creative Commons Attribution License (www.creativecommons.org/licenses/by/2.0), which permits unrestricted use, distribution, and reproduction in any Medium, provided the original work is properly cited.
© 2025, Dr. Bijal K Barot
Responding Author Information
Dr. Bijal K Barot @ info.ijsi@gmail.com
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