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Abstract
Nowadays, whole world considered India as an attractive and lucrative destination for Foreign Direct Investment (FDI). The eminent growth of FDI inflows in total service sector especially in the banking sector is most fabulous as it contributes biggest part to India’s Gross Domestic Product (GDP). Hence, Net inflows of FDI regarded as one of the major sources of economic development of India. The main objectives of the present study is toexamine the net FDI inflows in India and compare the growth rate and percentage of FDI inflows in service sector and Banking sector in India during different periods.