evidence: Foreign Direct Investment (FDI) is a stable means of financing capital requirements of a growing economy and both developed and emerging economies have made major efforts for augmenting the information base on FDI at market value. In India, major advancements have been made in this regard with the implementation of the Co-ordinated Direct Investment Survey (CDIS) of the International Monetary Fund (IMF) and compilation of Foreign Affiliate Trade Statistics (FATS). The empirical results from the analysis of key factors influencing FDI inflows indicate that trade openness, economic growth, market size, labour cost and capital account openness of the host countries are major determinants of FDI flows. [...] During the last decade, India focused on increasing FDI inflows and introduced a comprehensive FDI liberalisation strategy. During 2015, FDI rules were relaxed in 15 major sectors which include agriculture, civil aviation, construction, defence, manufacturing and mining. In 2016, direct investment regulations were amended further to encourage foreign investment in start-ups and liberalise the investment regime for foreign venture capital investors. During 2019, restrictions on foreign investment in single-brand retail trading, airlines and power exchanges were relaxed. In the beginning of 2020, FDI policy for e-commerce was liberalised in order to safeguard the interests of domestic offline retailers. [...] The reform made a positive foreign investment climate in India and helped in increasing growth in FDI inflows mainly due to strong investment in top three industry recipients viz., ‘manufacturing’, ‘communication’ and ‘financial services’. FDI inflows into India demonstrate increasing trend during 2014-15 to 2018-19 (Chart 4).