Resumen
With the start of globalization, many developing countries, mostly those in Asia, are witnessing an huge flow of FDIs during the past two decades. As compared to other Asian countries India witnessed the FDI inflows much later, but ever since India has been a hub and an attractive FDI destination. This research paper purposes to study the impact of FDI on the Indian economy, predominantly after two decades of economic reforms and also the challenges Indian economy is facing to position itself in global FDI space. The analysis provides the major policy implications and also draws attention on the difficulties in inferring FDI data in India.