This paper investigates FDI in India with comparison to China. The comparison is done with help of 12 years FDI data of India and China. China is chosen for a comparison with India as China is one of the fastest emerging economies of the world similar to India and one of the major competitors of India in terms of FDI inflow It also analyzed sector wise contribution of FDI in India. To study this correlation test is run between FDI and GDP in India. The result of correlation between the GDP and the FDI inflow shows that there is a high level of dependency between GDP growth and the FDI inflow in the economy.
