"Unlocking Opportunities: Exploring the Dynamic Influence of Foreign Direct Investment on Employment Rates and Economic Expansion in India"

Abstract

FDI has been a huge wellspring of capital for emerging nations like India. This examination aims to investigate the effect of FDI on India's Economic Growth and unemployment rate. The review will utilize optional information from different sources, including the World Bank, the Save Bank of India, and the Service of Business and Industry. The data will span a 30-year period, from 1991to 2021. In general, the term refers to a corporate decision to purchase a significant stake in a foreign company or to buy it all together to expand operations to a new territory. The word is rarely used to indicate a single stock investment in a foreign company. FDI is an important component of international economic integration because it establishes stable and long-term linkages between economies. The main objective was to find the relationship between FDI and GDP and the impact of FDI on economic growth. According to the Research, a change of 1 USD billion in FDI will change the GDP by 44.99 USD billion. Since there is a positive correlation between FDI and GDP so an increase in 1 USD Billion will increase the GDP by 44.99 USD Billion. In other words, it means that 5.14 percent of the changes in the unemployment rate is due to the FDI and the 0.22 percent change in Unemployment rate is due to other Variables which are defined in the error term.