Foreign direct investment (FDI) refers to investment made by foreign companies or individuals in productive assets located in another country. FDI brings capital, business experience, and technical know-how to the domestic economy. India allows FDI through an automatic route for most sectors, while some sectors require approval from the Foreign Investment Promotion Board. Since economic liberalization began in 1991, FDI inflows to India have increased and benefited the economy through job creation, technology transfer, increased exports and tax revenue. The top sectors and countries for FDI in India between 2000-2011 are also outlined.