International Journal For Multidisciplinary Research
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Volume 8 Issue 3
May-June 2026
Indexing Partners
A Comparative Analysis How Geographic Location and State Level Policies Influence the Inflow and Impact of FDI in Different Indian Cities
| Author(s) | Mrs Rimjhim Tirkey, Dr. Jaleshwar Bhagat |
|---|---|
| Country | India |
| Abstract | Foreign Direct Investment (FDI) has been very important in the economic growth of India since the liberalization process; it is however very skewed in terms of its geographical distribution among different cities. The research paper is a comparative study of the role of geographic location and policy frameworks by the state in either affecting the inflow or economic effects of the FDI in the chosen Indian cities. With a quantitative and comparative study design based on secondary information like government and institutional reports, the paper reviews city-level FDI inflows and their impact on major urban economic indicators, which are employment and productivity. According to the analysis, geographic advantages, such as access to ports, logistical connection, integration of industrial corridors, and the size of a metropolis, state-level policies, such as ease-of-doing-business reforms, investment incentives, infrastructure development, and quality of governance are all important. These results indicate that there is a positive correlation between good geographical location and good policy conditions on one hand and inflows of FDI leading to better employment and productivity results, on the other hand, especially in diversified and service-based cities. On the other hand, the cities that do not have favorable location endowments or favorable policy environments have lower inflows of FDI and less economic effects. The research paper concludes that the key to balanced, inclusive, and sustainable economic development of urban areas in India is the coordinated spatial planning and specific policy interventions at the state level. |
| Keywords | Foreign Direct Investment, Indian Cities, Geographic Location, State-Level Policies, Urban Economic Development. |
| Published In | Volume 8, Issue 1, January-February 2026 |
| Published On | 2026-01-12 |
| DOI | https://doi.org/10.36948/ijfmr.2026.v08i01.65320 |
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