Nexus between Macro Economic Variables and Foreign Direct Investment (FDI) Inflows in India: Evidence from Time Series Analysis

Abstract India’s FDI situation is presently seeing a steady move with liberalized reforms over the recent couple of years and an alluring investment atmosphere having beneficial outcome inflows. The main purpose this study to determine nexus between macroeconomic variables Foreign Direct Investment inflows in India from 1980 2016, applying Autoregressive Distributed Lag (ARDL) testing approach co-integration Toda Yamamoto Granger Causality test draw inferences. empirical results reveal long-run association Gross Domestic Product Inflows. findings also demonstrate that causality validates causal relationship foreign direct all economic under study, except Exchange rate Consumer price index. However, divulges bi-directional Policy makers are essential pushing reform agenda local market pull more into Indian economy.