Post 1991 after the Indian government threw open the economy to Privaatization, Liberalization and Globalization, India has experienced a sea change in its economic and business front. A large number of investment opportunities have opened up for private and multinational players fostering a scenario of perfect competition never before witnessed on the Indian economic front. In order to realize the full potential of this changing investment scenario the policy makers of the country have time and again retuned and updated the foreign investment policy of the country especially the one to do with foreign direct investment. This article attempts to explore the various dimensions of the foreign policy initiatives adopted by the Government of India. Attempt has been understand the Foreign Direct Investment policy in its holistic sense and present its contribution to the growth of the country’s economy.