AN INVESTIGATION INTO HOW CORRUPTION AFFECTS FOREIGN DIRECT INVESTMENT IN INDIA

Foreign Direct Investment plays an important role in promoting economic growth, industrial development, employment generation, technology transfer, and global competitiveness in India. The study indicates that corruption remains a significant factor influencing investor confidence, business operations, and investment decisions. Respondents generally believe that corruption increases uncertainty, operational costs, and administrative complexity while reducing the attractiveness of India as a destination for Foreign Direct Investment. The findings further demonstrate that transparency, accountability, effective governance, and administrative efficiency positively influence investor confidence and contribute to higher Foreign Direct Investment inflows. Government initiatives promoting digital governance, regulatory reforms, and anti-corruption measures have strengthened the investment climate by improving transparency and reducing administrative inefficiencies. Continuous improvement in governance quality, institutional effectiveness, and policy implementation will further enhance India's global investment attractiveness. Overall, reducing corruption and strengthening transparent governance remain essential for sustaining long-term Foreign Direct Investment and supporting inclusive economic development.

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