• Bharti Rana
• Kanchan Bajaj

Abstract Apart from being a critical driver of economic growth, foreign direct investment (FDI) is a major source of non-debt financial resource for the economic development of India. Foreign companies invest in India to take advantage of relatively lower wages, special investment privileges such as tax exemptions, etc. For a country like India where foreign investments are being made, it also means achieving technical know-how and generating production and level of employment. Therefore, India has gained favour among investors as attractive investment destination. The World Bank has also stated that the private investments in India is expected to grow by 8.8 per cent in FY 2018-19 to overtake private consumption growth of 7.4 per cent, and thereby drive the growth in India's gross domestic product (GDP) in FY 2018-19. In this paper an effort has been made to develop an understanding of the investment decisions, trading strategies and behaviour of FDI in Indian market. This research is based on secondary data of last 12 years (2006-2018) and results prove that FDI's are the cause for the changes in the values of majority of macro- economic variables, rather than an effect.

Keywords: Foreign Direct Investment, Foreifn trade policy, Macro economic variables, GDP, Indian economy, Economic growth

"IMPACT OF FOREIGN DIRECT INVESTMENT ON SELECTED MACRO-ECONOMIC VARIABLES OF INDIAN ECONOMY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 12, page no.82-91, December-2018, Available :http://www.jetir.org/papers/JETIR1812A12.pdf

"IMPACT OF FOREIGN DIRECT INVESTMENT ON SELECTED MACRO-ECONOMIC VARIABLES OF INDIAN ECONOMY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 12, page no. pp82-91, December-2018, Available at : http://www.jetir.org/papers/JETIR1812A12.pdf