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Abstract
Economic history is evident of the fact that presently developed nations of the world developed with the help of foreign capital. For example, England borrowed from Holland in the 17th and 18th century, the United States borrowed from England and France, Russia borrowed from United States and China took the financial help from Russia. A developing country like India may need foreign capital on account of - Low Capital Formation, Need for High Level of Investment, Development of Basic Economic Infrastructure, Exploitation of Productive Resources, Backwardness in Technologies, Making Balance of Payment Favorable, and Filling the Gap of Private Entrepreneurs. So, like other countries India also depends on foreign capital & technology for its economic development.