A study on impact of Foreign direct investement on GDP of India

FDI is the fueling element for any developing nations in terms of investement and finance. FDI is becoming the hot tool for inflow of investement for a country. FDI is thought to be the growth enhancing mainly through the capital, technology and know-how that it brings into the recipient country. This study has been attempted to discuss the impact of FDI on GDP and the trend of FDI inflow in Indian economy. Secondary data has been retrieved from various sites of Reserve Bank of India, World bank etc. for the time period 2000–01 to 2016–17 and Karl Pearson coefficient of correlation has been used to measure the impact of FDI on GDP. FDI is considered as dependent variable and GDP is considered as independent variableand results found that there is positive correlation between FDI and GDP if there is an increase of 1% FDI in India GDP of India will be increased by 0.67%. GDP means Gross Domestic product it includes all types of goods and services produced in an economy during a given period of time. GDP is an important indicator to check the growth of the economy. Thus, there is need to encourage FDI regularly to enhance the growth of the Indian Economy.