In order to encourage FDI, government policy is considered necessary. Is this detrimental to international trade as a whole? What about the impact on the countries concerned. Foreign direct investment (FDI) is a project carried out by an organization or element located in one country in an organization or substance located in another country. Immediate external projects vary widely from aberrant speculations, for example, portfolio flows, in which foreign establishments invest resources in securities registered on a country's stock exchange. Elements that undertake immediate projects usually have considerable impact and control over the organization in which the speculation is carried out. Open economies with talented workforces and broad development prospects tend to attract greater immediate external financing than closed, deeply managed economies. Foreign investment generates higher wages and is a major source of technology transfer and management skills in host developing countries. This helps to increase prosperity in the affected developing countries, as well as increasing demand for higher value-added exports from advanced economies. – OECD Policy Note, No. 6, 1998 (FDI) impacts the fiscal development of the host country through the exchange of new advances and capabilities, the definition of human capital, the combination in markets global markets, the expansion of rivalry and the improvement and reorganization of businesses. From an observational point of view, various studies recognize that FDI creates financial development in the host country. On the other hand, FDI is also confirmed to be a source of negative impacts. Given this uncertainty about the effects, this article surveys the existing hypothetical and exact literature on the subject, expected...... middle of paper ...... actors such as retail, news media and the banking sector. , which remained paralyzed by archaic policies. To ensure that India's economic growth benefits the entire country, the government must reform its agricultural sector to create jobs in rural areas. India has made great progress, but additional efforts will be needed to sustain its economic growth. With a rapidly growing population, India faces the challenge of creating millions of jobs to keep its population out of poverty. It remains to be seen whether the Indian government, the private sector and society at large will demonstrate the political will necessary to work together to achieve this goal. //ideas.repec.org/p/por/fepwps/390.htmlhttp://www.imf.org/external/pubs/ft/fandd/1999/03/mallampa.htmlhttp://unctad.org/en/ Docs/iteiia20034_en.pdf