International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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FDI as a Catalyst: Sectoral Impacts and Strategic Pathways for India’s Economic Rise

Author(s) Dr. K. LAXMAN GOUD
Country India
Abstract This study examines the impact of Foreign Direct Investment (FDI) on India’s economic development through a sectoral lens, focusing on key industries such as information technology, pharmaceuticals, automotive, infrastructure, and services. Using econometric tools, including panel co-integration and Granger causality analyses, the research evaluates the dynamic relationship between FDI inflows and sector-specific growth. Findings indicate that FDI substantially boosts productivity and output in sectors like IT and pharmaceuticals, while its impact remains modest in agriculture and select manufacturing segments. The study also highlights regional disparities, with states such as Maharashtra, Karnataka, and Gujarat attracting the highest FDI due to robust infrastructure and investor-friendly policies. Policy recommendations include strengthening infrastructure in lagging regions, streamlining regulatory procedures, and designing targeted sector-based incentives to diversify FDI inflows. Enhancing these areas will enable India to more effectively harness FDI for equitable and sustainable economic progress.
Keywords FDI, Sectoral Dynamics, Economic Development, India, Policy Interventions, Regional Disparities, Infrastructure Development, Regulatory Reforms, Sustainable Growth.
Field Mathematics > Economy / Commerce
Published In Volume 7, Issue 6, November-December 2025
Published On 2025-11-19
DOI https://doi.org/10.36948/ijfmr.2025.v07i06.61017
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E-ISSN 2582-2160
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