The study showed that FDI plays an important role in the economic development of the country. Thus, FDI procedure should be made easier. The government should announce some more incentive to the foreign investors. The study showed that the correlation in FDI inflow in secondary sector and its share in GDP was very strong. The FDI inflows in this sector directly affect the GDP of India. Thus, the government should take initiative to attract the maximum FDI inflow in this sector. While, in tertiary sector the average correlation was found, but still the FDI in tertiary sector will help in the economic development of the country, therefore, the government should also encourage the FDI investment in this sector.