Is Foreign Direct Investment- A New Engine for Growth and Economic Development of India?

Indian economy is one of the fast-emerging economy across the world with respect to Foreign direct investments. The development of any nation doesn’t happen overnight Foreign direct investment is a major vehicle for cash inflows into India economy. FDI is a major driving force and source for the development of any economy. Every year we are experiencing growth of FDI inflows into India. Post liberalization period India has witnessed major changes in the business activities, economy growth and capital formation during pre-liberalization period there was no conducive environment for conducting any business activity due to high tariffs, restrictive trade practices, restriction on import. After introducing liberalization, privatization and globalization policy in the year 1991, India has shifted focus towards outward oriented policy as well reduced restrictions on trade policies, import duties etc for feasibility of doing business. The flow of FDI inflows has arose from 4,029 Crore rupees in 2001 to 89,930 Crore rupees till 2023 june. In this research article author has made an attempt to present the statistical data pertaining to FDI inflows into India, besides this he made an attempt to understand the year wise equity flows into economy, state wise and sector wise attracting high FDI inflows into India. The aim of the present study is to understand the significance of Foreign direct investment inflows in development of India. The present study uses secondary data related to FDI investments which has been collected from DPIIT website and other published articles with the help of well defined inclusion and exclusion criteria. The results of the study reveals that service sector stood first with 16.33% of total equity flows in USD terms and it was observed that Maharashtra is attracting highest 4,43,961 cumulative equity flows from October,2019- june,2023.