The economic reform process initiated in India in the year 1991 was multi dimensional and aimed to make changes in many fronts. The period of economic transition has had a tremendous impact on the overall economic growth of India. It has boosted the growth of FDI (Foreign Direct Investment) sector too. Foreign investments are indispensible factors that help in boosting the growth of Indian economy .It plays an important role in the long term development of a country not only as a source of capital but also for enhancing the competitiveness of the domestic economy through transfer of technology, creating employment opportunities, strengthening infrastructure and so on. With the introduction of economic reforms [liberalisation policy], under the finance ministry of Dr. Manmohan Singh, India has witnessed a change in the direction of flow in FDI and its composition. This paper attempts to analyse the growth and trends of FDI in India. Secondary data is used for this purpose. Data is collected from the site of DIPP, RBI and so on. After analysis it is found that FDI in India grew tremendously since the implementation of new economic reforms. The Indian Economy is one of the most favourable investment destinations for both developed as well as developing nations. And thus we will be able to grab more on this opportunity in future by means of optimum utilization of available personnel and resources.