Published Paper Details:

Indian economy is one of the top emerging markets of the world. Five years ago, it was considered as part of the fragile five, but no longer. Since 2014, it has emerged as of the one top foreign destination in the world with a significant rise in FDI. The journey of attracting foreign investments started way back in 1991 with New Economic policy and India has unpretendingly scaled new heights in the level of FDI during 2000�s. The paper focuses on secondary data based on analysis of the inflow of FDI in India from 2000 to 2018. The paper also aims to look at different facets of positive FDI spill overs in the country. Foreign Direct Investment (FDI) refers to an investment made by a company based in one country in to another company based in other country. FDI is often preferred over Foreign Institutional Investments (FII) as it considered to be the most beneficial form of foreign investment for an economy. FDI plays a multidimensional role in the overall development of any economy. It provides a new source for capital, can lead to technological up gradation, skill enhancement and allocative efficiency effects. While FDI is expected to create positive impact on economy, it has also brought in certain negative impact on Indian economy during the past few years. The present study is conducted to study the relationship and analyze the impact of FDI on Indian economy. Flow of FDI for the past 15 years was taken for study (2000-2015). The impact was studied by testing the correlation with the country�s GDP and Stock Market Indices. Sensex and Nifty were considered as the representative of Indian Stock Market. The study concludes that flow of FDI in to the country plays a dominant role in deciding the stock market movements.