Impact of FDI on Indian Economy

Abstract

India has witnessed a tremendous economic growth, as measured by GDP, over the past 10 years. Many experts have pointed out that FDI (Foreign Direct Investment) has been one of the major factors taking India to this growth level. Foreign investment in India has increased continuously since liberalization in 1991 till date. FDI has been advantageous to Indian economy in several aspects, though a few drawbacks of FDI cannot be ruled out. The present paper conducts a review of studies in this area so as to analyze the impact of FDI on Indian economy.

Keywords: FDI, GDP, FII

JEL Classification: A10, A11, A12, A19, A20, E00, E19, E22, E24, E29, E60, F60, F62, F63, F69