Export Performance: A Predictor of Economic Growth of FDI

One of the most striking developments during the last two decades is the spectacular growth of FDI in the global economic landscape. This unprecedented growth of global FDI in 1990 around the world make FDI an important and vital component of development strategy in both developed and developing nations and policies are designed in order to stimulate inward flows. Moreover, the paucity of all types of resources viz. financial, capital, entrepreneurship, technological know-how, skills and practices, access to markets-abroad-in their economic development, developing nations accepted FDI as a sole visible panacea for all their scarcities. Further, the integration of global financial markets paves ways to this explosive growth of FDI around the globe. This study is aimed at the exports’ performance and its impact on economy. The study is based on the secondary data and to find out the inflow of FDI in India, correlation and regression is been applied. The findings of this study suggested that there is a positive impact of exports on FDI inflows.