India is one of the developing countries which has introduced a liberalization policy and a part of it relaxed the FDI regulatory framework on selective basis with reference primarily to the economic sector since 1991. The FDI plays a very important role in Indian economy and it's a non-debt creating long- term private capital. It also provides a stimulus to competition, innovation, savings and capital formation and enhances job creation, industrial growth and economic development. The economists believe that the impact of the FDI is positive, since it brings to the developing countries a package of capital, exchange, technology, managerial expertise, skills and other inputs which are critical for the event on Indian economy. The FDI will improve the international equality in allocating capital. In recent decades most the countries (developed yet as developing nations) initiated to draw in more FDI. It’s because, a number of the Asian countries like China, Thailand, Singapore and Korea increased their status among the world economy by using more foreign investment. Through the FDI, the country can bring new production technology and other inputs from the host economy thus generating benefits to both the host and also the source country. The liberalization policy is probably going to continue in the coming years and also the approach also changes its face towards the FDI. In this situation it's very urgent to check the main focus and importance of the Foreign Direct Investment from the direction of commercial development and growth, which can be useful to the state to guage and implement suitable policy and approaches for the advantages of the economy in the forthcoming period. Further the study will offer useful suggestions to draw in more FDI at the proper time and to the proper sector.

Keywords: Foreign, Significant, Investment, Commercial, Development, Social, Globalization, Economy.