Foreign direct investment is a significant contributor to India's overall economic development. After globalization, it has evolved into an essential component for the expansion and development of the economy. The aim of this research is focused on to explore the factors that motivate foreign direct investment (FDI), its impacts on macroeconomic indices, and its contributions to India's economic growth, technical advancement, employment creation, and export performance. For erudition and understanding the major role played by the foreign direct investment in leveraging competitive advantages, strategic locations, and operational effectiveness, the eclectic paradigm (OLI framework) provides a theoretical underpinning. Investigators have looked at the complex relationship that exists between Foreign direct investment and various aspects of the economy, including foreign exchange reserves, inflation, gross capital formation, gross domestic product (GDP), trade openness, and exchange rates. Although there are concerns over the decrease in Foreign direct investment inflows since 2012, the study shows the potential advantages of FDI, which include the expansion of infrastructure, the transfer of knowledge, and the maintenance of regional balance. The conclusion highlights the beneficial effect that Foreign direct investment has on equitable and sustainable development. It also highlights the necessity of policies that promote a favourable investment environment, along with the expansion of infrastructure and the strengthening of human capital. For determining the role and influence of foreign direct investment on macroeconomic growth, a survey was administered to 230 individuals from a variety of business disciplines. The results advocates and led to the conclusion that FDI has a major impact on macroeconomic development.

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Keywords: Foreign Direct Investment, Macroeconomic Development, India, Economic Growth, Export Performance, Technological Advancement, Job Creation.