Analysis of Foreign Direct Investment in India

Abstract

Since independent, India has adopted cautious approach for economic growth but after the implementation of LPG policy (economic reforms in 1991) India has liberalized its foreign policy and took series of measures to pull FDI. This paper aimed to investigate empirically the impact of GDP, population, import of crude oil and corruption perception index on FDI over the last 20 years i.e. 1998-2018 The multiple regression tests were used in order to analyze the causal relationship among corruption perception index, import of crude oil, GDP and increasing rate of population. It was found that there is significant relationship between FDI, and GDP import of crude oil, corruption perception index and population.