FDI (Foreign Direct Investment) is considered to be the lifeblood of economic development especially for the developing and underdeveloped countries.Foreign Direct Investment (FDI) has reached great extent in economic development witnessed during the past two decades in India. FDI has been a vital non-debt financial force behind the economic upsurge in India. Cheap cost wages and tax exemptions on the amount being invested are the few special investment vantages which attract foreign companies to invest in India. FDI help in transferring the financial resources, technology and innovative or improved management techniques along with increasing productivity. To ensure an uninterrupted inflow of FDI in India, the Indian government has initiated proper trade atmosphere and effective business policy measures.