Foreign Direct Investment: A Serious Impact on Indian Retail Market.

Foreign Direct Investment (FDI) influences the Indian economic growth through the transfer of new technology and know-how, formation of human resources, integration in global markets, increase of competition and firms' development and reorganization. Empirically, a variety of studies considers that FDI generate economic growth in India. The present paper makes a review of the existing theoretical and empirical literature on the subject, intending to shed light on the main explanations for the divergence of results in different studies. The main idea that stands out in this review is that the effects of FDI on economic growth are dependent on the existing or subsequently developed internal conditions of India (economic, political, social, cultural and other). Thus, the Indian authorities have a key role in creating the conditions that allow for the leverage of the positive effects or for the reduction of the negative effects of FDI on the Indian economic growth. This paper is an attempt to analyze the causal relationship between Foreign Direct Investment (FDI) and economic growth in India. The present paper tries to analyze and empirically estimate the effect of FDI on economic growth in India. [ABSTRACT FROM AUTHOR]