Relationship Between Foreign Direct Investment and its Determinants in India Shukla Vanya*, Mehta Shivani** *Student, B.A. (Honours) Economics, Amity School of Economics, Amity University, Noida, Uttar Pradesh, India **Assistant Professor, Amity School of Economics, Amity University, Noida, Uttar Pradesh, India Online published on 27 September, 2019. Abstract Foreign direct investment (FDI) is one of the major sources for economic development in under developed or developing countries. Emerging economies seek for foreign investment as it generate funds required for their development. Government of India introduced privatization, globalization and liberalization in 1991. Since then, the inflows of foreign direct investment have increased significantly. India is one of the most attractive destinations for foreign investors today This research paper explores the relationship between foreign direct investment and its determinants namely, Trade Openness, Exchange rate, External debt and Gross capital formation from 2008–2018. Regression analysis was used to find the causal relationship between these determinants and foreign direct investment. It was found that all the taken determinants are significant in determining foreign direct investment inflows in India. Top Keywords Foreign direct investment (FDI) Determinants India Trade Openness Exchange rate. Top |