International Journal of Contemporary Research In Multidisciplinary, 2026;5(5):390-397
Evaluating The Role of Foreign Direct Investment on Economic Growth: An In-Depth Study of India
Author Name: Dr. Adarsh Vaishnav; Dr. Shraddha Singh; Rahul Sonkar;
Abstract
Foreign Direct Investment (FDI) is pivotal for economic growth, driving prosperity through substantial, long-term investments in foreign enterprises. This relationship benefits host countries by bringing in capital, integrating supply chains, fostering technological innovation, expanding markets, creating jobs, and improving living standards, thereby alleviating poverty and boosting GDP. Empirical studies highlight FDI's positive impact on India's economic development. This research examines FDI's effects on GDP, Sensex, employment, exports, and foreign reserves over a decade using primary data. By formulating hypotheses and applying statistical tools like the Karl Pearson Coefficient of Correlation, the study quantifies FDI's impact on these variables. Findings reveal that FDI positively influences critical aspects of India's economic growth, offering valuable insights for policymakers and investors. These insights underscore the importance of creating an environment that attracts and supports FDI, thus strengthening India's economic foundations.
Keywords
Economy, Export, Foreign Direct Investment (FDI), Foreign Reserves, GDP