This study aims to illustrate the effects of foreign direct investment between 2000 and 2021. The first step in this study is to pinpoint the causes of the increase in foreign direct investment (FDI) entry into India. Next, the trend, primary sources, and alluring sources of FDI inflow are examined. Descriptive analysis has been used in this study to achieve this. The results show that the trend has many ups and downs because of global economic factors. The presence of a substantial market demand, a skilled labor pool, and tax breaks are the contributing factors. The main sources of FDI input are the USA, Singapore, and Mauritius. Additionally, during the study period, the main industries drawing FDI inflows were the service sector, telecommunication, computer software and hardware, and construction development.