Impact of Foreign Investments on Economic Growth of India

Foreign Direct Investment is an investment made by firms or individual of one country in the business of another country. Foreign investments have a positive impact on the development of the Indian Economy. Inflows of FDI strengthen the trade network of a country at global level and also provide financial assistance to that country. FDI helps in reducing the balance of payment (BOP) deficit. This paper is to analyze the impact of foreign investments inflows on the economic growth of India. Secondary data has been collected from the period 2002-03 to 2016-17 to achieve the objective. By applying regression technique and with regression model it is found that FDI has a significant impact on the growth of an economy.