The Impact and Growth of Foreign Direct Investment (FDI) on Indian Economy


  • Shivangi Kashyap Author
  • Dev Kumar Manadal Author
  • Dr. Kishan Jee Author


Infrastructure subsidies, export processing zones, economy, European Union


In the Indian economy, foreign direct investment, or FDI, has grown in popularity as a source of funding. It was first implemented in 1991 during the Liberalization, Privatization, and Globalization (LPG) policy. Following the introduction of FDI, the Indian economy opened up to foreign investment inflows across a range of economic sectors. Later in2014, the Indian government introduced the make in India" campaign and regarded FDI as the most important factor in the growth of the Indian economy. The main goal is to support Indian companies in their globalization. The Indian government has opened up a number of sectors to foreign direct investment, including pension funds, medical devices, insurance, railways, defense, and construction. This article looks at how FDI has grown, reviewed from the perspective of capital movement, and affected the Indian economy. The changes in FDI policy and nvestment limits in the various sectors of the Indian economy are also highlighted in this paper.


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