Foreign investment plays a vital role for Indian economy. Foreign investment is the way to fulfil the gap between foreign and household savings. Foreign Direct Investment is the most important tool for our Indian economy who invests in our companies and fulfils the gap of the lack of capital for industries. The objective of the paper is to find out the growth rate of Foreign Direct Investment (FDI) and impact of FDI in Indian economy. In this paper secondary data have been used from 2000-‘01 to 2018-‘19. Data have been collected from various website. This paper concludes that service sector is the attractive sector for inflow of FDI. Mauritius is the country from which flow of FDI is very high.