FDI AND SUSTAINABLE ECONOMIC GROWTH: TRENDS IN INDIA (1991-2023)

This study explores the long-term relationship between Foreign Direct Investment (FDI) and key macroeconomic indicators in India from 1991 to 2023, a period marked by structural reforms and progressive liberalization. Using secondary data and descriptive statistical methods, the research examines how FDI inflows have influenced GDP growth, income per capita, gross national income, trade performance, gross domestic savings, and foreign exchange reserves. The results reveal a consistent upward trend in all indicators alongside rising FDI inflows, with strong Compound Annual Growth Rates (CAGR) and high correlation coefficients—most notably with GDP per capita, savings, and exports. The findings suggest that FDI has not only supported quantitative economic expansion but has also contributed to structural transformation, productivity enhancement, and financial resilience. However, the benefits have not been uniformly distributed, raising questions about inclusivity and regional equity. The study highlights the need for targeted policies to diversify FDI flows, promote green investment, and ensure alignment with sustainable development goals. These insights offer valuable direction for policymakers aiming to optimize the long-term developmental impact of foreign capital in India.