With the inception of globalization, creating nations, especially those in Asia, are seeing a massive surge of FDI inflows during the previous twenty years. In spite of the fact that India has been a maverick to the FDI scene when contrasted with the other East Asian nations, its impressive market potential and a changed arrangement system has continued its fascination as a great objective for unfamiliar speculators. This examination plans to take a gander at the effect of FDI on the Indian economy, especially following 20 years of financial changes, and investigates the difficulties to situate itself well in the worldwide rivalry of FDI.