Citation:

Dr. Amaan Anjum. "Foreign Direct Investment as a Catalyst for Sustainable Development and Economic Growth in India" International Research Journal of Economics and Management Studies, Vol. 4, No. 4, pp. 20-27, 2025.

Abstract:

This paper examines the transformative role of Foreign Direct Investment (FDI) in India since the economic liberalization reforms in 1991. It explores how FDI contributes to economic growth through capital infusion, technology transfer, job creation, and integration into global value chains while assessing its potential for promoting sustainable development. By combining empirical analyses—including sector-wise and country-wise inflow data, regression results, and vector auto-regression models—with qualitative discussions of policy reforms and environmental challenges, the study provides a holistic view of the benefits and limitations of FDI in the Indian context. The findings reveal that while FDI has spurred GDP growth and industrial modernization, challenges remain in aligning foreign investments with long-term sustainable development goals.

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Keywords:

FDI, Sustainable Development, Economic Growth, India, Policy Reforms, Sector Analysis.