The Role of Foreign Direct Investment in India- An Analysis of Recent Trends of FDI Equity Inflows

Author(s)	Kavya B N
Country	India
Abstract	ABSTRACT Foreign direct investment is playing an increasing role in economic development. Economic reforms and the far-reaching political changes have resulted in very solid changes in the international capital flows. FDI now contribute to a significant share of the domestic investment, employment creation, exports etc.… in a number of economies. The changes in the composition of the capital flows and the substantial increase in the magnitude of some of the flows, like FDI, have remarkably changed the balance of payments and foreign exchange reserves position in India. In India some favorable factors help to attract recent level of FDI like improved global competitiveness, enterprising ecosystem, a dynamic innovation, proactive policy framework etc.… Also, India seems to be suffering from many challenges and restrictions. Some of the major challenges in the area of FDI are infrastructure facility, tax policies, political volatility, corruptions, government regulation etc... The present paper has focused on recent trends and patterns (2023-24 to 2025-26) of FDI flow in India and sector wise and state wise investment in India. This article tries to present “The Role of Foreign Direct Investment in India- An Analysis of Recent Trends of FDI Equity Inflows”
Keywords	Keywords: FDI, Equity Inflows, Trends and Patterns, Economic growth
Field	Business Administration
Published In	Volume 8, Issue 2, March-April 2026
Published On	2026-03-27

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