FDI-linked Spillovers and the Indian Economic Growth: The role of Country's Absorptive Capacity

The study's aim is to frame and analyze the influence of foreign direct investment (FDI) on a nation's economic growth. Inflows of FDI effect economic growth by causing an influx of physical capital and a technological spillover. Depending on the characteristics of the host nation, technology spillover will play a bigger role in stimulating economic growth. The study examines the influence of FDI on India's economic growth by adopting OLS regression to assess time series data of a variety of macroeconomic variables. The study found that the human capital has a critical role in regulating the economic growth of the host country by directly complementing FDI.