Foreign Direct Investment (FDI) in India: Trends, Impacts, and Policy Framework
Dr. Shinde Sangram Ramchandra
Dept. of Economics
Arts and Commerce College, Pusegaon Tal. Khatav Dist. Satara
Abstract
Foreign Direct Investment (FDI) has been a pivotal driver of economic growth in India, transforming it into one of the world’s top investment destinations. This paper examines the trends, sectoral distribution, economic impacts, and policy framework of FDI in India from 2000 to 2024. It highlights the role of government reforms, such as liberalization policies and ease of doing business initiatives, in attracting FDI. The study also analyzes the challenges of regulatory complexity, regional disparities, and sector-specific barriers. Using secondary data from sources like the Department for Promotion of Industry and Internal Trade (DPIIT) and research papers, the analysis employs descriptive and quantitative methods to assess FDI’s contribution to GDP, employment, and technology transfer. The findings suggest that while FDI has significantly boosted sectors like services and manufacturing, strategic policy interventions are needed to address inequalities and enhance inclusivity.
Keywords: Foreign Direct Investment, India, Economic Growth, Policy Reforms, Sectoral Analysis
DOI link – https://doi.org/10.69758/GIMRJ/2505I6VXIIIP0005
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