Foreign direct investment (FDI) has played an important role in many of the economies of the region. The present study is an attempt to examine the impact of FDI inflow on the Indian economy specifically to telecommunication sector. In this study the researcher has tried to know overall trend of FDI inflow and sub-sector wise FDI inflow in the sector.

The result shows that there is no sustainable growth of FDI in telecommunication sector however; there is no significant difference between FDI inflows in the various subsectors of the telecommunication sector of the Indian economy. This also directs that there is need to improve policy of FDI in telecommunication sector according to the changing scenario in global market.