FDI drives long-term economic growth in India, study finds.
The research looked at how foreign investment affects the income per person in India. They used data from 1970 to 2019 and two types of tests to see if foreign investment causes changes in income. The tests showed that foreign investment does lead to changes in income in the long run, but not in the short run. This means that attracting foreign investment can help India's income grow over time.