Economic reforms, FDI and economic growth in India

The major concern of the world economy in general and Indian economy in particular is to maintain the growth momentum which has been derailed after the global economic meltdown. So far as economic reform is concern, India has kicked started this in the year 1991 and since then there is no let off in this process. Foreign Direct Investment is one of the key areas which have been included in the reform agenda as there is a positive linkage between FDI and economic growth. Though there is a positive relation between FDI and growth, yet the effect of FDI on economic growth is not as per the expectation. However, there is a positive change in major macro economic variables due to large inflow of FDI after economic reforms.