IMPACT OF FOREIGN DIRECT INVESTMENT AND MACROECONOMIC FACTORS IN NSE BASED ON THE INFLUENCE OF MAKE IN INDIA
Keywords:FDI Inflows, political stability, balance of payment, imports, export, inflation rate, GDP growth rate.
This study examined the moderating role of political stability (PS) in the relationships between macroeconomic variables and the inflow of foreign direct investment (FDI) into India. For this purpose, this study uses the authentic annual data for the period 2011 to 2020. The empirical analysis involves the use of the ADFtest to check the downtime of the data, the EViews software, and hierarchical regression using the SPSS 19.0 statisticssoftware package. The results of the study confirm that the GDP growth rate, exports, imports and balance ofpayment has a positive significant effect on the inflow of FDI into Pakistan. On the other hand, the inflation rate wasnot significant in determining the direct inflow into the country. The GDP growth rate and the balance of Payment tends to be a significant factor for the inflow of FDI when the moderate effect of political stabilityis accounted for. Based on the findings of this study, it is strongly suggested that political stability is crucialthe country's foreign and foreign investment expansion in the future direction. Study also provides a basic insight towards the FDI inflow towards the NSE and its impact on Make in Inida with a pre and post anlaysis on the influence of the make in India scheme.