ROLE OF FOREIGN DIRECT INVESTMENT IN ENHANCING INNOVATIVE BUSINESS PRACTICES IN INDIA: AN EMPIRICAL STUDY

Abstract

As of 2023, India holds the 8^th spot globally in terms of receiving foreign direct investment, highlighting the nation's vital importance of FDI to its economic growth and development. It involves overseas companies or individuals putting their money into businesses and sectors within the country’s economy. “This study explores the crucial impact of foreign direct investment (FDI) in driving India’s economic growth, as the country continues to stand out as, one of the top destinations for global investment.” Foreign direct investment plays a key role in boosting growth across various sectors-from agriculture and manufacturing to services meaningful changes to India's overall economic landscape. By tapping into foreign direct investment, Indian businesses gain access to advanced technologies, improve their productivity, and explore fresh opportunities for growth and expansion. Foreign direct investment plays a vital role in fueling economic growth by directing funds into productive sectors, encouraging the exchange of technology, and boosting innovation and market competition. It supports India’s long-term goals of inclusive development and lasting prosperity. A sample of 247 was collected. The factors that influence the role of Foreign Direct Investment in Enhancing Innovative Business Practices in India are the Technological and Innovation Ecosystem, Technology Transfer and Knowledge Sharing, Skill availability & Human capital, and Green and Sustainable Innovation.