ZENITH International Journal of Business Economics & Management Research
Year : 2018, Volume : 8, Issue : 3
First page : ( 189) Last page : ( 198)
Online ISSN : 2249-8826.

Impact of Foreign Direct Investment on Gross Domestic Product

 Reena

Research Scholar Imsar, MDU, Rohtak

Online published on 2 May, 2018.

Abstract

Foreign Direct Investments (FDIs) have given the Indian economy a tremendous boost. While India needs these investments to maintain a steady rate of economic growth, the government needs to tread with caution and ensure foreign investors do not take control of the Indian economy as a result of its liberalised policies. The country today needs a comprehensive and inclusive development strategy, which will use foreign direct investment to lift India's poor from their current state of deprivation. 1991 reforms have mushroomed FDI destination in various sectors in Indian economy like insurance, banking, outsourcing, IT, manufacturing, telecommunication Construction and transportation, which has lead to series of development in all these sectors and made them stand in global platform. India is second most sought after destination for FDI after China. Objectives of this paper includes to study trends and pattern of Foreign Direct Investment in India during 2006–07 to 2015–16 and to describe impact of FDI on Indian Gross Domestic Products. Value of correlation is 0.70 which means there is strong positive correlation between FDI and GDP

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Keywords

FDI, GDP, Economic Growth.

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