• Dr. KUNTALA RAMESH

This research explores the effects of Foreign Direct Investment (FDI) on India's economic growth from a sector-specific perspective, concentrating on vital industries such as information technology, pharmaceuticals, automotive, infrastructure, and services. By employing econometric techniques, including panel co-integration and Granger causality analyses, the study investigates the reciprocal relationship between FDI inflows and sectoral expansion. The results reveal that FDI plays a significant role in enhancing output and productivity in sectors like IT and pharmaceuticals, while its influence is comparatively weaker in agriculture and certain manufacturing areas. Additionally, the research points out regional inequalities, noting that states such as Maharashtra, Karnataka, and Gujarat receive the bulk of FDI due to their strong infrastructure and supportive policies. Recommendations for policy improvements include upgrading infrastructure in less developed areas, simplifying regulatory processes, and offering sector-specific incentives to attract a more diverse range of FDI. By focusing on these aspects, India can better leverage FDI to foster balanced and sustainable economic development.

Foreign Direct Investment, Sectoral Analysis, Economic Development, India, Policy Recommendations, Regional Disparities, Infrastructure, Regulatory Framework, Sustainable Growth.

"Foreign Direct Investment and Its Influence on India’s Economic Development: Sectoral Analysis and Policy Recommendations", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 5, page no.j447-j456, May-2025, Available :http://www.jetir.org/papers/JETIR2505A42.pdf

"Foreign Direct Investment and Its Influence on India’s Economic Development: Sectoral Analysis and Policy Recommendations", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 5, page no. ppj447-j456, May-2025, Available at : http://www.jetir.org/papers/JETIR2505A42.pdf