Foreign Direct Investment and Manufacturing Sector Export of India

Pyare Lal

Abstract: In today's globalised economy, the majority of developing nations have identified export-led economic growth as a key growth strategy. The effectiveness of this strategy depends greatly on the influx of foreign direct investment into developing nations with capital shortages. The inflow of foreign direct investment is intended to boost technology, productivity, and ultimately exports of the host economies due to the multiple benefits experienced by multinational corporations. The statistical facts and numbers for India demonstrate that real GDP, foreign direct investment, and exports of goods and services all grew more quickly after the adoption of economic reforms. The impact of foreign direct investment on the manufacturing sector's export structure is also examined. The manufacturing sector's export statistics reveal that during the reform era, the percentage of exports from low-tech, labour-intensive manufacturing industries has decreased while the percentage of exports from high-tech sectors has increased.

Keywords: Gross Domestic Product, FDI, Exports