Foreign investment is a boon for domestic countries for enhancing employment opportunities and is a strong tool for reducing poverty. India is one of the desirable destinations for foreign investors. Based on this background, this chapter has been drawn with specific objectives such as examining the significant role of foreign direct investment (FDI) in India and analysing the impact of FDI inflow in generating employment opportunities in India. To become self-reliant in a developing country, the FDI helps promote domestic production and achieve a positive gross domestic product for the nation. This research study is based on the existing research works and secondary data sources. Various pieces of literature have been sourced from published articles and data collected from the World Bank database and published reports. Collected literature and data were analysed and the results have been discussed. Secondary data was chosen from the period 2001 to 2019. It is recorded that 48.96% of FDI inflow for the agricultural sector declined to 43.21% in 2019. It saw a steep drop. Over some time, the service sector attracted a good amount of FDI from various countries to India, it has improved from 24.29% to 26.56% during the year from 2001 to 2010 respectively. On the whole, the FDI positively impacted employment growth, human development, infrastructure, agriculture, industry, and service sectors.