In the current world economic scenario, the foreign direct investment (FDI) plays a very important role to develop the economy of a country. Sometimes domestically available capital is inadequate for the purpose of overall development of the country. Foreign capital fills the gap between domestic investment and investment needed to sustain the growth of the economy. In this situation, India needs FDI to develop the Indian economy. The FDI is one of the most important development tools to build up self-reliance in various investment sectors of the economy. In this backdrop, One Way ANOVA and Tukey’s HSD test are used to find the significant difference among sector wise FDI investment and to make the group of individual sectorial investment into homogenous subsets based on significant divergence of FDI investment among them.  The study shows that significant difference is present among different sectors and foreign investors mainly prefer to invest in the manufacturing and communication service sector in India.

Keywords: FDI, Foreign Investment, ANOVA, Tukey’s HSD Test.