A STUDY ON INCLUSIVE GROWTH IN THE INDIAN ECONOMY

ABSTRACT Inclusive growth stands for the equitable development of all sectors in a nation and the growth trajectory of the Indian economy since 1991 liberalisation period. The inclusive growth on agriculture, industry and service sectors are not stable in the Indian economy. The potential of capital accumulation is not utilised in the Indian economy properly. Foreign and Domestic Investments are responsible for the critical patterns of economic growth. The study evaluates the impact of investment growth on the inclusive growth of the economy. The objective of this analysis is to study the effects of domestic and foreign investment in the inclusive growth of the Indian economy. The study attempted to analyse the growth and share of agriculture, industry and service sectors in the Indian economy. The study identifies the following variables viz., the annual growth rate of agriculture, industry and services sectors and gross fixed capital formation, gross capital formation and foreign direct investment. The study obtained data from the Department of Industrial Policy and Promotion, Handbook of Statistics on Indian economy for various issues. For analyse, the study also uses the index numbers, annual growth rate, averages, percentages, unit root test, co-integration and Granger causality test. Key Words: Inclusive Growth, FDI, GFCF, GCF and Indian Economy JEL Code: E01, P45, O16, E22