ANALYSIS AND IMPACT ANALYSIS OF FDI ON EMPLOYMENT GENERATION IN INDIA: A COMPREHENSIVE EXPLORATION DURING THE PERIOD OF 1991 TO 2018

Wealth creation is a key factor in economic development. Investments may result in the construction of tangible assets like machinery and equipment, financial assets like stock capital, and intangible assets like human capital (e.g., creation of health, education and research and development activities). Changes in the production and consumption of goods and services have an influence on the economy's levels and growth. Foreign and local investment both exist. Domestic investment may provide savings. Domestic saving falls short of domestic investment. Keeping other factors constant, less investment slowed economic development, lowering income, consumption, and employment. Imports may help close the savings gap. Regardless of the domestic imbalance, foreign investment may boost economic development in an open country. Foreign investment would encourage local investment. Foreign investment helps India's economic growth and development. Investment increases production and elevates people's level of life. Keeping this in mind, both developed and emerging nations are attempting to invest. There have been three main divisions in the exploratory study of FDI offered. Creating Additional Jobs One further investigation has been offered on FDI Inflows and the Employment to Population Ratio between 1991 and 2019. This research focuses a lot on how foreign direct investment (FDI) affects employment rates. This study intends to provide evidence that demonstrates how foreign direct investment (FDI) has assisted India in the process of job creation. FDI's economic effect may be assessed using Excel's regression analysis. A breakdown of India's GDP by industry can be seen in the three charts and table above. As is well-known, the secondary and tertiary sectors of the Indian economy are the primary sources of new job creation. Tertiary sector refers to the service industry in India, whereas secondary sector refers to the industrial sector. Both sectors are important to the Indian economy. Analysis of time series The GDP is clearly influenced by the decline in primary and sluggish flow of secondary. GDI's tertiary sector contribution has increased significantly. According to the data presented in this paper, the India's FDI inflows represent a proportion of the country's GDP. The research also illustrates the country's employment to population ratio (EP Ratio). Finally, this research stated that the foreign direct investment and job creation has no significantly impacted.

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Keywords: FDI, Employment generation, India's Economic Growth.


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