Abstract

The present paper is an attempt to highlight the impacts of FDI inflows to India on Indian GDP. The study is purely based on secondary data which covers 10 financial years (2011-12 to 2021-22), and the analysis of which was made through the application of Karl Pearson’s coefficient of Correlation and Multi Regression OLS model (Ordinary Least Square). The study exhibited a strong positive correlation between foreign direct investment and GDP (r= 0.870) and indicated that FDI is the most important predictor of GDP with R square value of 0.757 which showed that FDI accounts for 75.7 per cent of variations in GDP; and b-value {Unstandardized co-efficient (B=39.679)} indicated that as FDI increases by one unit (1 billion), GDP increases by 39.679 units. It was further indicated through the results that if impact of FDI remain constant, then there are other factors which are explaining GDP up to 28571.885 units.

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