FDI INFLOWS IN INDIA AND THEIR ECONOMIC IMPLICATIONS: A CONTEMPORARY ASSESSMENT

Foreign Direct Investment (FDI) has become a central pillar of Indias structural transformation since economic liberalisation in 1991. Building on official data from DPIIT,RBI, UNCTAD, and Government of India publications, this paper analyses the long-run trends, sectoral patterns, determinants, and macroeconomic implications of FDI inflows into India between 2000 and 2025. The article employs a mixed-method analytical approach combining descriptive time-series analysis, sectoral composition examination, and secondary econometric evidence. The findings indicate that FDI has contributed positively to GDP growth, productivity enhancement, export capability, and technological upgrading, particularly in services and high-value manufacturing. However, regional concentration, weak MSME integration, and volatility in net inflows present structural challenges. The paper concludes that Indias FDI strategy must evolve from volume-driven attraction to quality, stability, and distribution-oriented frameworks that foster inclusive and sustainable growth.