Foreign direct investments can be considered as an important source of financing for developing and under developed countries. In this regard, India has actively attracted FDI by creating and sustaining a high conducive investment climate through economic reforms which make it easier for businesses to get started. This paper investigated the relationship between the attracted FDI and the GDP per capita in India. The findings shows that there is a strong positive relationship between the FDI inflows and the GDP per capita for the studied period which covers 20001 to 2014, thus a positive effect on the economic growth.
