STUDY FOREIGN DIRECT INVESTMENT (FDI) IN INFORMATION & TECHNOLOGY (IT) AND ITeS SECTOR IN INDIA

Foreign Direct Investment (FDI) serves as a crucial driver for India's economic development. This paper explores the transformative impact of Foreign Direct Investment (FDI) on the Information Technology (IT) and Information technology-enabled services (ITeS) sector in India, focusing on growth, expansion, and key indicators that have shaped the sector's evolution. With a comprehensive analysis of statistical evidence, the study highlights how the IT and ITeS sector has become one of the top recipients of FDI, attracting significant investments that have propelled the sector's global presence and contributions to India's economic landscape. The liberalization of FDI policies and government initiatives, such as 'Digital India,' has further enhanced the sector's attractiveness, facilitating a vibrant startup ecosystem and driving technological advancements and R&D. The paper underscores the sector's critical role in employment generation, with FDI inflows creating vast opportunities within and beyond the sector. The study concludes that FDI has been pivotal in enabling the IT and ITeS sector's growth trajectory, contributing significantly to India's GDP, export earnings, and global IT standing while fostering innovation and strategic global integration.Keywords: IT, ITeS, GDP, liberalization