Abstract
Foreign Direct Investment (FDI) has played a crucial role in shaping the Indian economy over the past few decades. This paper explores the impact of FDI on various sectors of the Indian economy, including manufacturing, services, and infrastructure. By analyzing data and empirical studies, it is evident that FDI has contributed significantly to economic growth, technological advancement, employment generation, and export expansion in India. The liberalization of FDI policies, coupled with favorable regulatory reforms, has attracted substantial foreign capital inflows, fostering innovation and competitiveness in domestic industries. However, challenges such as regulatory hurdles, bureaucratic inefficiencies, and infrastructural bottlenecks persist, hindering the full realization of FDI’s potential benefits. Nevertheless, FDI remains a critical driver of India’s economic development, necessitating continuous policy efforts to enhance its positive impacts while addressing existing constraints. This paper concludes by suggesting policy recommendations to further leverage FDI for sustainable economic growth and development in India.
Keywords: Foreign Direct Investment, Economic Development