Factors Influencing FDI in India's Service Sector

Authors

  • Ali A Senior Research Fellow, Dept. of Commerce, University of Kalyani, Kalyani, India
  • Pal A Assistant Professor, Dept. of Commerce, University of Kalyani, Kalyani, India

Keywords:

Determinants, Foreign Direct Investment, India, Service Sector

Abstract

This research article primarily investigates the factors that influence the inflow of Foreign Direct Investment (FDI) in Indian service sector from 1991 to 2021 by considering seven independent variables namely, skilled labour, inflow of FDI in manufacturing sector, exchange rate, external debt, rate of inflation, FDI openness and GDP growth. The results of regression analysis demonstrates that amount of FDI inflow in manufacturing sector, GDP growth rate and economic openness on FDI within service sector are the key drivers in Influencing the inflow of FDI in service sector. Hence, this study suggests that the policymakers aiming to attract more FDI in the service sector should prioritize promoting manufacturing investments, improving overall growth rate and also focus in implementing transparent policies to instil confidence, among investors regarding India’s economy.

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Published

2023-12-15

How to Cite

Ali, A., & Pal, A. (2023). Factors Influencing FDI in India’s Service Sector. Journal of Academic Advancement, 2(02), 84–92. Retrieved from https://jaa.kbsaa.org/index.php/j/article/view/36

Issue

Vol. 2 No. 02 (2023): Jul-Dec

Section

Research Articles

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