Evaluating the Key Drivers of Economic Growth of India: A Time-Series Analysis

DOI

10.2991/978-94-6239-795-8_16How to use a DOI?

Keywords

Labour force; Gross Capital Formation; human capital; ARDL; FDI inflows; health expenditure; education expenditure

Abstract

India’s transformation from a post-independence developing nation to a rapidly expanding emerging economy across the globe has been driven by decades of structural reforms and institutional development. Although numerous studies have been conducted to study the major factors of India's economic growth, limited evidence exists on the simultaneous effects of labour, capital formation, education expenditure, health expenditure, inflation and FDI in both long-run and short-run using recent time-series data. To bridge this gap, the present study simultaneously examines the influence of labour, capital formation, human capital, macroeconomic stability and foreign investment on Indian economy within a unified ARDL framework for the time period from 1980-81 to 2022-23. The findings reveal that while FDI inflows and inflation negatively affected economic growth, the rest variables carry positive influence over Real GDP. While impact of labour, GCF and health expenditure is statistically significant, that of educational expenditure is insignificant. Inshort-run, economic growth is significantly influenced by labour force and FDI inflows. The results emphasized the significance of improvement in the efficiency of education and health expenditure to enhance labour productivity, ensuring price stability by regularly monitoring inflation to mitigate its adverse effects, and productive use of FDI to promote economic growth by directing it towards growth-enhancing sectors.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sheetal Rawat
AU  - Devayani Keer
AU  - Tanu Vaidya
PY  - 2026
DA  - 2026/10/08
TI  - Evaluating the Key Drivers of Economic Growth of India: A Time-Series Analysis
BT  - Proceedings of the International Conference on Advancing Economics (ICAE): Redefining Growth: Integrating Economy Society and Sustainability for a Resilient Future (ICAE 2026)
PB  - Atlantis Press
SP  - 261
EP  - 275
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-795-8_16
DO  - 10.2991/978-94-6239-795-8_16
ID  - Rawat2026
ER  -