Foreign direct investment is essential to the economic growth of any emerging nation. Over the past two decades, foreign direct investment (FDI) has become more critical to India's economy. Foreign direct investment bridges the gap between these two financial practices. Numerous nations in transition, including India, are struggling with a lack of a savings surplus. In this case, FDI from outside is the key to success in addressing the issue. Investment from abroad helps lower the BOP gap and lays the groundwork for fast GDP expansion. Only secondary sources were used for this analysis. This research paper investigates the current state of foreign direct investment (FDI) and its effects on the Indian economy. To that end, we make some educated guesses based on actual data from 1991 to 2014 to draw this conclusion. We employ helpful statistical methods like correlation and linear regression analysis to achieve this end. SPSS software was used for the analysis of the data. And therefore, we arrive at the conclusion that FDI has a considerable impact on India's GDP. The last two decades have seen a massive increase in foreign direct investment (FDI) into Asia. India has been a bit of a late bloomer when it comes to foreign direct investment (FDI), but the country's large market potential and liberalized regulatory system have kept it a popular choice among investors. The purpose of this article is to study the difficulties India has in attracting foreign direct investment (FDI) and to investigate the effects that FDI has had on the Indian economy in the last two decades. The study highlights the difficulty of understanding FDI statistics in India and discusses the primary policy implications of this research. Words to Remember GDP, Economic Growth, and Foreign Direct Investment.