---
title: "What is the impact of FDI?"  
description: "What is the impact of FDI?"  
author: "Saddiya  Anwar"  
published: 2020-02-17  
canonical: https://answers.mindstick.com/qa/92735/what-is-the-impact-of-fdi  
category: "indian economy"  
tags: ["indian economy"]  
reading_time: 1 minute  

---

# What is the impact of FDI?

What is the [impact](https://www.mindstick.com/articles/44109/the-importance-of-b2b-marketers-and-their-impact-on-the-company) of [FDI](https://yourviews.mindstick.com/view/85456/foreign-direct-investment-fdi-and-its-impacts-on-host-countries)?

## Answers

### Answer by Saddiya  Anwar

![What is the impact of FDI?](https://answers.mindstick.com/questionanswer/b5d02d09-e750-4726-9200-916f357dc726/images/14137f93-a074-48dc-bde1-2faf130a374e.jpeg)

Foreign Direct Investment is a major driver of economic growth as it enhances productivity by bringing capital, skills and technology to the host country. The [Government](https://answers.mindstick.com/qa/92734/what-is-receipt-budget) is playing a proactive role in investment promotion through liberal FDI policy.

During 2019-19, total FDI equity inflows were US$44.36 billion as compared to US$44.85 billion during 2017-18. More than 70 per cent have come mainly from Singapore, Mauritius, Netherlands, Japan and United Kingdom, out of FDI equity inflows of US$44.36 billion during 2018-19.

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