Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Foreign direct investment (FDI) and the key sectors contributing to the Per Capita Growth Rate of India

Author(s): Piyali Roy Chowdhury, A. Anuradha

Economic growth is very crucial for developing economies due to their challenges in the process of development. Many less developed economies face this adversity while focusing on the strategies to promote economic growth. In this respect, the current study explores few probable factors which lead to explain the economic scenario in India. The study analyses influence of foreign exchange earnings from inbound tourism (EAR), foreign direct investment (FDI) and manufacturing sector value added output (MANU) on per capita economic growth (PCG) for a period of 1996-2018. Among all the variables taken for the study, findings of the study reveals value added output from the manufacturing sector to be a most influential factor to promote per capital economic growth. Surprisingly, the analysis explores FDI to be significantly negative impact oriented towards encouraging economic growth.

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