It can be observed that few key industries belonging to these two sectors have boosted at a faster rate than the others and attracted more FDI than the others.
The Indian economy witnessed a high FDI inflow after the reform of economic liberalization. The increasing trend continued in the last financial year 2017-18. This increase can be attributed to factors such as the high rate of GDP growth, low inflation rate, exchange rate, trade openness and economic and political stability.
The Indian chemical industry has gained a major share in Asia’s growing contribution to the global chemical industry. It has also emerged as one of the preferred destinations for investment in the chemical industry worldwide (Chambers, Road, & Nadu, 2012).
The purpose of this article is to empirically examine the impact of FDI inflows on the rate of inflation in India. Therefore this article considers the relation between FDI and another important macroeconomic variable namely rate of inflation.
Economic performance of a country is measured by economic growth and the most commonly used indicator for economic growth of a country, its Gross Domestic Product (GDP) or Gross National Product (GNP). GDP is the aggregate value of all final goods and services produced in the domestic territory of an economy or a country in a certain period of time.