With the initiation of globalisation, developing countries, significantly those in Asia, are witnessing a Brobdingnagian surge of FDI inflows throughout the past 2  decades.  Even tho' India  has  been  a arriver  to  the  FDI  scene compared to alternative East Asian countries, its substantial market potential and a   liberalized   policy   regime   has   sustained   its   attraction   as   a   favourable destination  for  foreign  investors.  This analysis  paper  aims  to  examine  the impact  of  FDI  on  the  Indian  economy, significantly when 2  decades  of economic reforms, and analyzes the challenges to position itself favorably within the international   competition   for   FDI.   The   paper   provides   the   major   policy implications from this analysis, besides drawing attention on the complexities in decoding FDI knowledge in India.