Introduction
The constitution of India through the preamble, fundamental rights and directive principle of state policy set its ideal and goal in its true sprits to do social justice by removing economic inequalities provide decent standards of living; protect the interest with aim to end poverty, ignorance, diseases and inequalities of opportunity. It refers the making economic policy also where FDI elected as one of the major such economic policy allowed to achieving the objective of constitution of India. Subsequently Foreign direct investment (FDI) is that investment which a government, institutions or individuals make in a different country to that of the investor’s own country of origin. Under the head of foreign policies which is described as the diplomatic relation between any two countries which is founded in 1970 by Samuel P. Huntington in the bimonthly American magazine. This relationship can take the form of subsidiary or joint venture, depending upon the interest of control and/or the stipulation of the government of the host country. The host country is expected to benefit from the inflow of such intangible assets. Transnational corporations from developing countries are motivated by market-seeking, efficiency-seeking, resource-seeking, or created-asset-seeking behaviour. The last two decades of the 20th century witnessed a dramatic world-wide increase in foreign direct investment (FDI), accompanied by a marked change in the attitude of most developing countries towards inward FDI. As against a highly suspicious attitude of these countries towards inward FDI in the past, most countries now regard it as beneficial for their development efforts and compete with each other to attract it. India is one such country which emerged in the world scenario in the 1990s and has become a strong destination for foreign investment More particularly in the era of