FDI is one of the most important components which increase the revenue of the country and is also considered as a major monetary source for the economic development of India. The main causes of FDI are the availability of cheap labor in India when compared to a foreign country. The main objective of this paper is to analyze the impact of FDI on GDP and workforce across economic sectors of India, to study and evaluate FDI inflow in India and also to study the initiatives which are taken by the government to promote FDI. This paper is descriptive in nature and based on secondary information btained from various websites, the obtained data is analyzed in order to suit the objectives of the study, by using a simple statistical tool and findings and suggestion are drawn based on the analysis of the data.