Do Macroeconomic Indicators Encourage Foreign Direct Investment in Indian Retail?

This study primarily endeavors to understand whether macroeconomic variables foster the inflow of foreign investment into the retail sector of India. The researchers tried to determine whether any longterm or short-term implications can be derived from the relationship between traditional macroeconomic variables and foreign direct investment (FDI) retail using various econometric tools. All the variables contemplated in this study could reasonably contribute to changes in FDI retail Inflow to India. Trace statistics and max-eigen statistics confirm the long-term relationship amongst the variables. The study also revealed that consumer price index (CPI), gross domestic product (GDP), foreign exchange reserve (FER), sensitivity index, and NIFTY Granger-cause FDI retail, while FDI retail does not Granger-cause any of these variables.