Dynamics of Foreign Direct Investment in Rajasthan
Keywords:
foreign direct investment, state gross domestic product, infrastructure and net value added
Abstract
Rajasthan, a land of promises has received ₹ 1549.10 crore FDI inflows in 2019-20 and ₹ 6259.48 crore in 2022-23 which is about a 304 per cent increase in FDI inflows in the last four years. FDI inflows have grown at a Compound Annual Growth Rate (CAGR) of 33.23 percent in Rajasthan in the post-liberalization period in India. While the states are competing to attract more FDI inflows organize investor's summit and initiate policy reforms to facilitate investment opportunities in their region. This study aims to analyse determinants of FDI inflow in Rajasthan state which is a land-locked state with an abundance of natural resources and skilled manpower. Foreign Direct Investment (FDI) a non-debt-creating capital inflow stimulates employment generation, and fills the gap between domestic saving and investment. It is found that there is a direct relation between FDI inflows and the Gross Domestic Product growth of the host state.
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2024-01-23
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