Essay Writing Exercise – FDI on the Indian Economy: SEBI Grade A 2023

Descriptive English – Essay Writing

Here’s an Essay Writing exercise for a SEBI Grade A paper II aspirant on “the impact of foreign direct investment (FDI) on the Indian economy”, based on dot connecting methods:


  • Define foreign direct investment (FDI)
  • Discuss the importance of FDI in the global economy
  • Mention India’s policy towards FDI


  • Highlight the impact of FDI on various sectors of the Indian economy, such as manufacturing, infrastructure, and services
  • Discuss the positive effects of FDI, such as increased job opportunities, technology transfer, and improved productivity
  • Highlight the challenges faced by India in attracting FDI, such as bureaucratic hurdles and regulatory uncertainties
  • Analyze the impact of FDI on the balance of payments, exchange rate, and economic growth
  • Discuss the impact of FDI on domestic firms, such as increased competition and access to new markets
  • Highlight the role of government policies in promoting FDI and the need for reforms to make the investment climate more attractive


  • Summarize the key points discussed in the essay
  • Discuss the future prospects of FDI in India and the need for a balanced approach to reap maximum benefits while minimizing risks
  • Emphasize the importance of FDI in achieving India’s economic growth and development goals.

Model Essay

Foreign direct investment (FDI) is an essential component of the Indian economy. FDI has played a significant role in enhancing economic growth, creating employment opportunities, and bringing in technology and expertise to the country. The impact of FDI on the Indian economy has been both positive and negative.

FDI has brought significant benefits to the Indian economy, particularly in the manufacturing sector. FDI has brought in modern technology, improved productivity, and created new jobs. It has also led to the development of the infrastructure sector, such as the construction of highways, ports, and airports.

However, the Indian economy has also faced some challenges in attracting FDI. Bureaucratic hurdles and regulatory uncertainties have made the investment climate less attractive. The impact of FDI on domestic firms has also been a matter of concern, as it has led to increased competition and access to new markets.

The impact of FDI on the Indian economy can be analyzed from different perspectives, such as the balance of payments, exchange rate, and economic growth. FDI has contributed significantly to the growth of the Indian economy, and the government’s policies have played a vital role in promoting FDI.

FDI has played a crucial role in the growth and development of the Indian economy. However, the challenges faced by the country in attracting FDI need to be addressed. The government needs to create a favorable investment climate by removing bureaucratic hurdles and providing a stable regulatory environment. The impact of FDI on domestic firms should also be closely monitored to ensure a level playing field for all.