FDI in India and its Growth Linkages

FDI in India and its Growth Linkages

Foreign direct investment (FDI) plays a multidimensional role in the overall development of the host economies.  The present study aims at providing a detailed understanding of the spatial and sectoral spread of the FDI-enabled production facilities in India and their linkages with the rural and suburban areas. The corresponding impact on output, value-added, capital and employment in the regions receiving FDI has also been worked out.  FDI-enabled plants in India are spread across various states with relatively high concentration in Maharashtra, Gujarat, Tamil Nadu, Karnataka and West Bengal. A significant proportion of manufacturing plants are located in small cities (population less than 5,00,000). More than two-fifth of the market capitalisation originates in small cities. FDI-enabled service facilities have a relatively high concentration in Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu. The proportion of service facilities located in small cities is relatively less significant vis-a-vis manufacturing plants.

Publication

  • 18585FDI in India and its Growth Linkages

    Foreign direct investment (FDI) plays a multidimensional role in the overall development of the host economies.  The present study aims at providing a detailed understanding of the spatial and sectoral spread of the FDI-enabled production facilities in India and their linkages with the rural and suburban areas. The corresponding impact on output, value-added, capital and...   Read More

Researchers

  • 429FDI in India and its Growth Linkages

    Bornali Bhandari is a Senior Fellow at NCAER with a background in international economics and macroeconomics, specifically focusing on the impact of globalisation on development. Currently, she is engaged in a number of industry studies including automobiles, farm mechanisation, and digitisation. Her wider research interests include analysis of skilling from a 3-E perspective (education, employability...   Read More

External Team:
Prabhu Prasad Mishra, Ashwini and Geeta Mohan