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A Study of Foreign Direct Investment (FDI) on Manufacturing Industry in India: An Emerging Economic Opportunity of GDP Growth and Challenges

Abstract

Sanghamitra Samal and D.Venkatrama Raju

The economic development of a country is based on its Industries Revolution with more production and promotion (Less Import and more Export of Product ) which are mostly possible through the revolution of agriculture, industries etc. in many sectors . The developments are easily possible when Foreign Direct Investment (FDI) comes to India and enters in 1991. It is an important source of Economic development in India, because it helps to bring close the different economies of the country by investing capital through FDI in various resources like manufacturing, infrastructure, transport, technology, services, productivity and hospitality etc. This paper seeks to present “The Role of Foreign Direct Investment (FDI) on Manufacturing Industry in India: An Emerging Opportunity of GDP Growth and its Challenges” particularly studies about the role and Importance of FDI in manufacturing sector. Here, the researcher has taken the hypothesis (Ho), maximization of FDI in manufacturing Sector in Industry it develops the economic condition of the factory as well as the Country with maximizing GDP (He). Where this paper taken two variables of study for extracts how it impact on the manufacturing sector of the country and how it affects the economic growth of GDP. It analyzes about the growth of economy and manufacturing sector of Indian Companies due to liberalization of Economic Policy of the Country as well as the policy framed by the honorable Prime Minister Mr. Narendra Damodar Das Modi’s dream Project of “Make in India” and Smart Cities” etc. In this research article, the researcher has focused on the center of Foreign Direct Investment (FDI) on manufacturing Industries of India. By investing more FDI it facilitates the economic development & as well as increase the growth of the domestic Product (GDP) of the country and found its positive impact in every sector of industrial life and Human life in order to maintain a sustainable & moderate life style.