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Abstract
FDI is a tool for economic growth through its strengthening of domestic capital, productivity and employment. FDI also plays a vital role in the up gradation of technology, skills and managerial capabilities in various sectors of the economy. The paper investigates objective of this paper is to examine the Foreign Direct Investment (FDI) inflows in India and especially in service sector. In this research attempts the FDI and its impact in GDP, mainly we have seen the relationship between the GDP with FDI flows. This analysis has revealed that Foreign Direct Investment has positive and significant impact on GDP We understand the FDI Inflows in service Sector is showing the consecutive growth trend to getting FDI inflows.