Impact Of Fdi On Macroeconomic Factors Of India

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IMPACT OF FDI ON MACROECONOMIC FACTORS IN INDIA R.PRIYA*; Dr.M.JEGADEESHWARAN** *M.PAHIL Research Scholar, Bharathiar University, Coimbatore, Tamilnadu, India. **Assistant Professor Bharathiar University, Coimbatore, Tamilnadu, India. ABSTRACT Foreign Direct Investment is the major tool of attracting International Economic Integration in any nation. It serves as a relationship between investment and saving. Many developing countries like India are facing the scarcity of savings. This crisis can be solved with the help of Foreign Direct Investment. In this paper an endeavor has been taken to analyze the trend of FDI in last 11 years and to analyze the relationship between foreign direct investment and macroeconomic factors like GDP, Exports and Foreign Exchange Reserves (FER) in India using data for a period from 2001 to 2012. This study has investigated the twin objectives viz trend of FDI and relation of FDI with macroeconomic factors viz GDP, Exports, Foreign Exchange Reserves (FER).The trend and relation between these variables has been analyzed by percentage analysis, Compound Annual Growth Rate (CAGR), and Correlation Analysis. Findings of the study indicate that FDI can be used as vehicle for growth of macroeconomic indicators of the economy. Keywords: Economic Growth, Foreign Direct Investment (FDI) , Foreign Exchange Reserve (FER), Gross Domestic Product ( GDP), Compound Annual Growth Rate (CAGR), Trend, Correlation. INTRODUCTION Foreign direct
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