Open Access

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Peer-reviewed

Foreign Direct Investment (FDI) and Economic Growth in India

Dr. Bijal K Barot

DIP: 18.02.059/20251002

DOI: 10.25215/2455/1002059

Received: May 16, 2025; Revision Received: June 25, 2025; Accepted: June 30, 2025

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.

Responding Author Information

Dr. Bijal K Barot @ info.ijsi@gmail.com

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Foreign Direct Investment (FDI) and Economic Growth in India

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Article Overview

ISSN 2455-670X

DIP: 18.02.059/20251002

DOI: 10.25215/2455/1002059

Published in

Volume 10 Issue 2, April – June, 2025

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