A substantial amount of development has been observed in the inflows of Foreign Direct Investment (FDI) in India over the last two decades. The extraordinary growth of FDI in 1990 around the world has made it an essential constituent of development strategy for both, developed and developing countries. However, the most profound effect has been observed in developing nations. Macroeconomists have performed various studies in order to prove that FDI plays an important role in generating employment and improving the economic development, in other words, increasing the level of gross domestic product (GDP) of host countries. A multiple-regression model will be used intensely in order to analyse whether FDI has an impact on the employment and GDP in India.