Sustainable Economic Development Assessment and FDI: An Indian Perspective

This paper aims to establish impact of Foreign Direct Investment on growth and vividly on development of India. Quantitative research design was used, and secondary data collection method was utilized to collect the sample of SEDA score, Income, Economic Stability, Employment, health, Education, Infrastructure, Equality, Civil Society, Governance and Environment. GDP Growth (%), GDP in current US billion Dollars. Further, Linear Regression, maximum likelihood method and Auto regression model (VAR) followed by Granger causality Wald test (GC) was used to evaluate the causality between GDP and FDI and Sustainable Economic Development Assessment (SEDA). The primary findings portray impact of FDI on GDP to be positive but growth rate to be negative. Impact of FDI on overall development (SEDA) score is positive including some distinct variables as well but its impact on environment is negative. Three-way causality between FDI, SEDA and GDP Growth exist. Findings provide a comprehensive image of how FDI has impacted a developing country like India in terms of growth and development.