Investigation of FDI's influence on India's Fiscal Improvement: verification by ADF & ARDL Scrutiny

Abstract

Inflows of foreign direct investment (FDI) are frequently seen as a major driver of economic expansion in emerging nations. Goals of the investigation are for assessing association among macroeconomic factors and foreign direct investment, as well as to evaluate the FDI and financial growth of Indian aspects. This research analyzed statistics of 2004–05 directed towards 2022–23, and the estimates were made using the “Augmented Dickey–Fuller” & “Auto-Regressive Distributive Lag” techniques. Findings of the study show that a positive association may arise from foreign direct investment that is large enough to support India's economy and has the power to have a significant enough impact to propel economic growth.