India has made significant strides in terms of its economic development and competitiveness in recent years. One area in which there has been significant change is in its approach towards foreign direct investment (FDI). This paper uses modified economic impact analysis tools to estimate the impact of FDI from the US, EU, and the overall on India’s economy. Although limited by published data, the results suggest that over 20% of India’s GDP can be traced to the impacts of foreign-invested enterprises. The results also suggest that attracting additional FDI can be an important vehicle for India to improve its competitiveness.
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