Determinants of FDI Inflows in India and Its Economic Impact

The aim of the study is to analyse the determinants of Foreign Direct Investment (FDI) inflows in India and its impact on Indian economy during the period 2012-13 to 2021-22. The study is based on Secondary data. For the data analysis, Correlation, Regression and Paired T test are adopted in the study. The study shows that FDI inflows reveals upward trend. Singapore and Mauritius contribute the major portion of FDI in India. Service sector and Computer Software and Hardware attracted highest FDI. GDP, Per capita GDP, Gross capital formation, Exports, Exchange rate, Foreign exchange reserve, Industrial Production Index and Trade openness are the major determinant factors of FDI inflows in India. There is significant difference in FDI inflows in the pre and during Covid 19 pandemic periods. There is significant impact of FDI inflows on Indian economy in the pre covid 19 pandemic period