The Indian Economic Factors Impact on Foreign Direct Investment (FDI) On Indian Economic Growth.

Abstract

The study covers several aspects of FDI in the country, ranging from FDI patterns and FDI
drivers to FDI relations, growth and exports, taking into account several factors such as the
formation of raw equities, macroeconomic stability, institutional capital and human capital.
In recent years, the FDI has increased so greatly that it has surpassed all other metrics of
economic transactions. Countries are bidding for the highest levels of FDI, as they are the
cheapest foreign funding. The FDI rate has increased to the developed countries in the last
two decades, compared to the previous trend. There may have been a surprising rise of Asia
as big FDI recipients. In the 2014 industry review, the highest FDI for the service sector was
found. In the fields of training, accounting, infrastructure and telecoms, most of the FDI
inflows are generated. The self-employed industries authorize government investments in
chemical, metallurgical, automobile, Pharmaceutical and tourism sectors. The main recipient
is FDI, but FDI flows are subject to policy constraints. Despite the lack of restrictions on
FDI inflows in metallurgical, chemical, automotive, pharmaceutical and tourism industries,
FDI growth in those sectors was much lower than in the FDI markets for utilities and
telecoms.The study focuses on the impact of Indian Economic Factors on Indian foreign
direct investment.

Keywords: Foreign Direct Investment, Indian Economic Factors, Economic Growth.

JEL Classification: G1, F21, F43, O43, O47.