International Economic Integration plays an important role in the overall development of a country. Foreign Direct Investment is one major instrument of attracting International Economic Integration in any economy. It serves as a bridge in between investment and economic growth. Countries around the world developed and developing, are taking efforts to attract greater flows of FDI into their economies. India has followed an extremely cautious approach after economic reforms in 1991, India has liberalized its foreign policy and took several measures to attract FDI. India has a large potential market, pool of talented, educated and skilled workforce, has relatively low labour costs and liberal democratic political structure, the FDI inflows into India have remained low in comparison to other emerging markets. This paper seeks to know the trends and patterns of FDI in India, to analyze the state of FDI inward in India and identify the reasons that have made India less attractive preference as compared to other nations. The study is based on secondary data and the data has been collected from various reports and publications of Government of India, World Bank, World Economic forum etc.

Keywords : FDI, International Economic Integration, Emerging Markets, Economic Reforms.