Foreign Direct Investment (FDI), a source of investment from investors other than the host country, is considered as a major contributor in accelerating the economic growth of a country. Recognizing the potential of FDI, the Indian Government over years has taken various steps on policy and implementation front to encourage greater inflow of FDI under automatic route and has shifted its stringent regime to liberal one. Enduring efforts are being made to open up Indian economy to international participation and attracting international investments by raising sectoral caps and relaxing conditions attached to the same. Department of Industrial Policy & Promotion (DIPP), Foreign Investment Promotion Board (FIPB), Secretarial of Industrial Assistance (SIA) and Reserve Bank of India (RBI) are the nodal agencies which monitor the regulatory and administrative aspects of FDI in India.