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Impact of Foreign Direct Investment on GDP Growth Rate in India: Analysis of the New Millennium

  • Pooja GuptaEmail author
  • Vikku Aggarwal
  • Karan Champaneri
  • Kritika Narayan
Chapter

Abstract

Foreign direct investment (FDI) is described as an investment into another country by an organization with the idea of production of a good or marketing of a product in the country of investment. Besides being a pivotal source of non-debt capital inflow for the host country, it also commits transfer of technology, skill and know-how from one country to another. It has essentially been contemplated as crucial for the integrity of global economies ensuring deeper and enduring ties between nations. This chapter aims to look at the impact of FDI on the growth rate in the Indian economy. The growth rate of the economy is measured as the growth rate in GDP. The time period of the study is the new millennium, that is, from 2001 onward till early 2018. The time period has been chosen such as to study the impact of FDI on the growth rate of India in the pre-financial crisis period (2002–2007), the financial crisis years (2008–2012) and the post-financial crisis period (2013–2018). This delineation of the time period helps in understanding the impact in a better way.

Keywords

FDI GDP Growth rate India Crisis 

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Copyright information

© The Author(s) 2020

Authors and Affiliations

  • Pooja Gupta
    • 1
    Email author
  • Vikku Aggarwal
    • 1
  • Karan Champaneri
    • 1
  • Kritika Narayan
    • 1
  1. 1.Symbiosis Institute of Business ManagementBengaluruIndia

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