Role of Sectorwise FDI Inflow on Growth of India- An Empirical Analysis

Dr. Bashir A. Joo, Faiza Ali Dhar

With the major economies of the world embracing globalization, Foreign Direct Investment has attained the status of an eminent and indispensable tool. India opened up its economy to globalization during the 1990s and experienced a multitude of changes with the beginning of an era of economic reforms. With the establishment of an open trade policy, India has become increasingly competitive in attaining foreign funds. But the debate around the effects of FDI still has a wide range of conclusions. From a negative relation with the growth of the host economy to a positive robust relation, all sorts of conclusions have been drawn. This paper attempts to empirically investigate the role of FDI in the growth of Indian economy by studying the effect of FDI inflows in major sectors.