International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Foreign Direct Investment (FDI) and Industrial Growth: An Empirical Analysis in Maharashtra

Author(s) Subhash Sambhaji Agale
Country India
Abstract This research investigates the impact of Foreign Direct Investment (FDI) on industrial growth in Maharashtra, a leading industrial state in India. The study aims to empirically assess the relationship between FDI inflows and key industrial growth indicators, such as manufacturing output, employment, and GDP share, using data from the Department for Promotion of Industry and Internal Trade (DPIIT) spanning 2000 to 2017. Employing multiple linear regression and correlation analyses, the research reveals that FDI inflows have a statistically significant positive effect on industrial growth, particularly through enhancing manufacturing output. The findings indicate a moderate correlation between FDI and manufacturing output, suggesting that FDI plays a crucial role in boosting industrial productivity and capacity. However, the study also finds that FDI's impact on employment is limited, reflecting the capital-intensive nature of many FDI projects in Maharashtra. Additionally, the minimal impact of FDI on GDP share underscores the need for diversified and inclusive strategies to maximize FDI benefits across various sectors. The study concludes that while FDI is pivotal in driving Maharashtra's industrial growth, targeted policies and complementary measures are necessary to address employment generation and broader economic objectives, thereby optimizing the role of FDI in regional economic development.
Keywords Foreign Direct Investment, Industrial Growth, Maharashtra, Manufacturing Output, Employment, Economic Development
Published In Volume 1, Issue 1, July-August 2019
Published On 2019-08-28
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E-ISSN 2582-2160
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