Impact of Foreign Direct Investment on the GDP of India

The aim of present paper is to find out trend and growth in the FDI equity inflows & GDP of India and then to see the impact of FDI on the GDP of the State. For this purpose, the secondary data have been collected from the RBI bulletin 2017 and web site-tradingeconomies.com for 17 years from 2000-01 to 2016-17. The secondary data have been analyzed with the help of some suitable statistical tools like- mean score, standard deviation (SD), CAGR, trend analysis and regression analysis. The paper observed an oscillating trend in FDI equity inflows and increasing trend in GDP of India with a CAGR 21.44 per cent and 12.69 per cent respectively. The paper also makes sure that FDI equity inflows (r=0.949) have a significant impact on the GDP of the State of India and there is high degree of correlation between FDI and GDP.