Foreign Direct Investment and Indian Economy

Make in India was launched by Prime Minister, Narendra Modi on 25 September 2014, to encourage companies to manufacture their products in India. He has launched this ambitious campaign with an aim to turn the country into a global manufacturing hub. This study focuses on the changes in FDI rate after introduction of Make in India by Modi and growth due to increase in the FDI rate. In August 2014, the Cabinet of India allowed 49% foreign direct investment (FDI) in the defence sector and 100% in railways infrastructure. FDI inflows before and after the "MAKE IN INDIA" campaign were compared using the quantitative data which has been collected from various reports like Reserve Bank of India Database on Indian Economy, database of department of Industrial Policy and Promotion. It has been analyzed that there is high correlation between Industrial Production and FDI inflows. The effect of FDI on economic development ranges from productivity increased to enable greater technology transfer