Author(s): Amit Hedau and Sarbesh Mishra
Economic growth is determined by foreign direct investment (FDI) in conjunction with other macroeconomic factors in the country where it takes place. FDI is a key driver of India's economic growth, and this research looks at how financial development and macroeconomic factors affect FDI inflows. The study analyses panel data for the year’s 2001 to 2022 using moderated regression. The annual GDP growth rate is analysed in relation to a set of independent variables through regression analysis. Two indices, "financial development" and "macroeconomic indicator", are constructed using the weighted average approach. The interactive relationship between FDI and the two indices is then examined. The significance of financial growth in attracting FDI inflows is shown by the findings. The study's findings may help organizations and investors navigate the tangled web of relationships between FDI and economic development. The findings can provide important insights to policy makers in formulating the country's FDI policy.