Foreign investment fuels Indian economic growth, creating jobs and boosting competitiveness.
Investment from other countries like foreign direct investment (FDI) and foreign institutional investment (FII) plays a crucial role in India's economic growth. FDI involves a parent company investing in a foreign country, while FII involves investors investing in foreign markets. These investments help create more economic activity, generate jobs, bring in technology, and make industries more competitive. A study looked at the connection between FII/FDI and India's economic growth from 2000 to 2010.