Foreign direct investment (FDI) is defined as a long-term investment by a foreign direct investor in an enterprise resides in host country. This FDI is the sum of equity capital, reinvestment of earnings, long term and short term capital which is distributed on sectoral basis in host country economy. In large economies such as India the FDI investment does not only mean the transfer of funds from home country to host country but It also include the participation in management, joint ventures, technology  transfer and knowledge spillover etc. Moreover trend of FDI inflow assist in the economic development of India in context of employment generation and boost up the level of export of host country.There are large number of investorscontributed the FDI in India but top ten countries shared approx 80% of cumulative FDI and remaining 20% shared by rest of the world from year 2006 to 2012. However among these top ten countries only the Mauritius contributed the lion share of Investment to India. Actually this maximum FDI inflow come to the India from Mauritius route because the India passed a treaty with Mauritius in 1992 that facilitated the total exemption from capital gain tax and early incorporation of companies in Mauritius. In India the countries preferred to invest because of low cost labour, large market size,vast natural and physical resources andhuge youth oriented population .In general the FDI is entered in most of the permitted sectors but in particular the service sector remained on top priority for FDI investment in India from year 2000 to 2012.

KEYWORDS: Mauritius Route, Service Sector, Trend of FDI.