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FDI is one of contributory factor in economic growth of the host countries. It strengthens nation domestically as well as internationally. In India, post the 1991 economic reforms, the regulatory environment in terms of foreign direct investment has been consistently eased to make it more and more investor friendly and to supplement domestic capital, technology and skills. Recent FDI policy pronouncements in various sectors of the economy are expected to attract chunk of investments and create additional jobs as well as induce employment and spur up the make in India program. The objective of the research paper is to study the impact of FDI in employment generation in India. The study also observes relationship between FDI and GDP. The study is descriptive and analytical in nature. The study is secondary data based and is taken from the data base of the Reserve Bank of India, Ministry of Labour and Employment, India and World Bank. The time period taken for the study is 2006-07 to 2016-17. Statistical and mathematical techniques such as simple growth rate, compound growth rate, correlation and regression is used. It is observed that there exists positive correlation relationship between FDI and employment, FDI and GDP. But the impact of FDI on total employment is not significant. It is observed that pro-active reforms oriented decisions taken by the government particularly for easing of FDI rules in various sectors of the economy are going to push employment generation, youth empowerment and boost overall economic growth in the coming years.
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