FDI is the buzz words of today’s modern economy. The concept of Globalisation has overcome all geographical and cultural barriers bringing all the economies in vicinity and opening more areas of business together. FDI is the result of Globalisation with add-on of liberalization policies based on a simple concept of opportunity gain by utilising niche and cost advantage over diversified geographical market. Economic reforms of 1991 have proved boon the economy of the India. Liberalization policy of India has literally lubricated the capital boost of the economy .Further India’s incremental participation in trade organizations such as WTO, WCO, WFTU, G-20, BIS, AIIB, ADB, WCO has provided it with the shimmering advantage to be the FDI magnet.

KEYWORDS: FDI, Economy, Globalisation, Liberalisation, Economic Reforms.