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Globalization and liberalization brings lots of new innovative products to the world, Foreign Direct investment is one among this, also there are number of different forms of FDI is available currently. An Indian company may receive FDI either through automatic route or government route. Foreign capital refers to the investment of capital by a foreign government, institution, private individual and international organization in the productive activities of a country. It is a direct investment into production in a country by a company located in another country or by expending operation of an existing business in that country. Simply putting the money of your country which is functioning in some other country is FDI. If we invest this way then we are a foreign investor. FDI plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access of new technology, products, skills and financing for a host country, which receives the investment. Recently world economy is passing through the global crisis. India is not free from its effect. India is also suffering from inflection and economic crisis. To overcome this situation and make to economy speedy, Indian Government has decided to do economic reforms, as a result, Indian government has taken steps in this direction and make free FDI in some sectors like retail, broad casting, airline etc. Indian government has increased limits of foreign investment in such sectors. Government of India allowed FDI in different sectors of Indian economy.