FDI is an important multinational tool which is providing a great support in influencing business activities in entire world. This paper is discussing about the every aspect of FDI in India. How India is strengthening its economy by getting FDI. Increased inflow of FDI enhances both sectors industry sector and service sectors. This is also covering each and every sector of economy like humane resource development, finance and technology, increasing exports and facing of competitive market. Paper is highlighting 20 years of FDI inflow in India and also showing state wise and sector wise inflow. Paper is merely focusing on FDI performance in insurance sector.

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Keywords: FDI, Inflow, Privatization, Globalization, Insurance Industry.