Initially, the MNCs accustomed follow the standard resource or market seeking strategy. Thereafter it graduated to strategic asset-seeking and/or efficiency-seeking strategy, where production in the host country wasn't strictly associated with the resource base or the market size of the economy; rather, comparative cost factor became the principal propulsion. Riding on the wave of digital technology, now the strategy has become market-seeking again, but with a fresh outlook. With the remarkable shift in the importance of FDI during this digitized globe, the world is experiencing a momentous transformation in the pattern and trend of FDI inflows. External financial flows to any economy generally include personal capital investments, Foreign Direct Investments, foreign portfolio investments (FPI), and many others. The globe Investment Report (WIR) 2017, advocate by the world organization Conference on Trade and Development (UNCTAD), finds that FDI is always the most important as well as smallest amount and flexible sources of finance (from External sources) to the all under developed countries. Their consistent stability in and after the 2008-2009 global financial crisis is because of their minimalistic short term circular movements as well as lesser insensitivity, as compared to FPI and other means of foreign investments. The Objective with which this Research Paper is written is to find out the impact of Foreign Direct Investment on Growth of Economy and employment. With the help of various secondary data obtained from various published resources, and using descriptive Technique of analysis, the impact of Foreign Direct Investment on Growth of Economy and employment generation has been evaluated. With the introduction of Foreign Direct Investment in India, the primary sectors which attracted the Foreign direct Investment was Banking and Insurance followed by Telecommunication and Automobile. However, the contribution in employment generation of Foreign Direct investment is found higher in service sector than any other sector. However, the role of Foreign Direct Investment alone cannot be taken as the only factor in this growth. India’s own captive employment generation is also played a significant role.

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Keywords: Investment, Manifestation, Consistent, Development, Financial, Economy, Employment.