Chaudhary Saket Kumar
Commerce
December 2022
FDI is the term for capital inflows from abroad that are used to enhance or increase the potential for economic growth. The connection between FDI and economic growth has garnered a lot of interest in the study of global growth for a while now. In a time of unsure global capital progressions, foreign direct investment (FDI) emerges as a workable detour to more rapid growth in developing nations. It plays a significant role in the long-term development of a nation as a source of capital and for enhancing the seriousness of the domestic economy through initiatives toward innovation, supporting the legal system, increasing efficiency, and opening up new business opportunities. Foreign direct investments (FDI), which are permitted across industries and business sectors, have steadily increased, demonstrating the faith that international financial backers have in the flexibility of Indian markets. The data also reveals a high correlation between the increase of FDI and GDP and that the flow of FDI into India is positively impacting the country's GDP. The expansion of FDI and FII provides additional evidence of this positive relationship.
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© Airo Journals 2021
