• RICHA PATEL

Foreign Direct Investment is described as an investment by a firm into another another firm located abroad by owning more than 10% of its equity, the former being said "parent enterprise" (or "investor") and the latter "foreign affiliate”. Foreign Direct Investment plays an important role by strengthening the infrastructure, increasing productivity and creating employment opportunities in host country. The objectives of research paper are to analyse the trends of Foreign Direct Investment Inflow in Indian Economy, its impact on the growth rate and imports of the country. Secondary Data has been obtained from the website of Reserve Bank of India, Department of Industrial Policy & Promotion. The research involves uses of Descriptive Analysis of Secondary Data, Augmented Dickey-Fuller Test to check the stationarity of data, Co-integration Test to analyse any long term relationship between Inward Foreign Direct Investment & Gross Domestic Product and Inward Foreign Direct Investment and Imports. The research concludes that there is positive relationship between Economic Growth and Foreign Direct Investment Inflows. No long run relationship has been found between Foreign Direct Investment and Import which denotes that FDI has no significant impact on imports of principal commodities.

Foreign Direct Investment, Economic Growth, GDP, Imports

"Foreign Direct Investment: Impact on Economic Growth and Import", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.729-734, June 2019, Available :http://www.jetir.org/papers/JETIR1908576.pdf

"Foreign Direct Investment: Impact on Economic Growth and Import", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp729-734, June 2019, Available at : http://www.jetir.org/papers/JETIR1908576.pdf