Impact of Foreign Direct Investment, Export, Import and Inflation on Economics Growth in India: An Empirical Analysis

This study investigates the impact of FDI, trade components, and inflation on India's economic growth. The research employs the Autoregressive Distributed Lag (ARDL) bounds testing technique to examine long and short-term co-integration, and the Error Correction Model (ECM) is used to analyse model of specification. The findings reveal a long-term relationship between FDI, exports, imports, inflation, and economic growth. Moreover, FDI inflows, exports, and inflation in India show a positive but insignificant effect on economic growth, while imports appear to have a negative and insignificant impact. Ultimately, the study suggests that more favorable government policies towards FDI could help stimulate a more dynamic Indian economy.