FDI is an investment made by an individual or a firm resides outside the country where the investment is being made. FDI is a significant source of funding for firms that fail to collect capital that is readily available. Just after China and the United States, India has emerged as one of the most preferred destinations. Since 1991, efforts have been done to make the regulatory environment and the process of FDI investor – friendly. The Department of Industrial Policy & Promotion (DIPP) of GOI formulates the process of FDI on a yearly basis. Most recently, modifications were made for FDI policy in India in the year 2019. The paper reviews the current FDI policy regime in India for various sectors with an analysis of total inflow as well as Equity inflow in India. This paper also investigates the priority of overseas investors to make investment in various sectors.

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Keywords: FDI, Investment Routes, FDI Policy, DIPP, Sectors for FDI.