Econometric analysis of the impact of foreign direct investment and other macro-economic indicators on economic growth in India

Because it establishes connections between nations that are both enduring and stable, foreign direct investment, or FDI, is an essential component of global economic integration. The connection between FDI and economic expansion has long been a significant issue worldwide. Using econometric analysis, this study examines the impact of FDI on India's economic growth from 1991 to 2022 and other important parameters like trade openness, inflation rate, government expenditure, domestic investment, human capital, and international crisis. Economic growth is positively impacted by trade openness, government spending, domestic investment, and human capital, according to the empirical findings. On the other hand, economic growth is negatively impacted by the inflation rate and international crisis, which are statistically insignificant. By including the effects of FDI-led economic growth on poverty alleviation and income distribution, the study also suggests a future research direction.