AN ANALYSIS OF FDI INFLOWS ON INDIA’S GDP IN THE SERVICE SECTOR AND THE COMPUTER SOFTWARE HARDWARE SECTOR

This study’s secondary data is collected from a variety of sources, including articles from newspapers, journals, and the Department of Industrial Policy (DIPP). The study sample contained GDP (at factor cost), FDI inflows into the computer software and hardware sectors, and FDI inflows into the service sector. The financial year data of the service sector inflows of FDI, computer software hardware sector inflows of FDI and GDP (at factor cost) from the year 2010-2011 to 2020-2021.The results of this study, which applied linear regression, revealed that foreign direct investment (FDI) in the service sector significantly and favourably effects the gross domestic product (at factor cost). Inflows of computer hardware and software then significantly boosted India’s GDP growth. The results of the multiple linear regression analysis reveals that the inflows of computer software and hardware and the service sector have a beneficial effect on GDP growth.