Foreign direct investment (FDI) has boomed in post-reform India. Moreover, the composition and type of FDI has changed … considerably since India has opened up to world markets. This has fuelled high expectations that FDI may serve as a catalyst to … higher economic growth. We assess the growth implications of FDI in India by subjecting industry-specific FDI and output data …

to FDI and regional development in India in the post-reform period. First, we analyze the location choices of foreign … growth. FDI is thus likely to increase regional income disparity in India. …