This paper reviews the Indian experience with FDI since the 1991in a comparative East Asian perspective. The structure of the paper is as follows: Section 2 summarizes the evolution of Indian government’s policy towards FDI. Section 3 examines the trends and patterns in FDI inflows in the 1990s. It also comments on the determinants of FDI inflows in India. Section 4 examines the impact of FDI in terms of various parameters of development. Section 5 discusses the emerging trends in the MNE activities in knowledge-based industries in India, viz. IT software and global R&D activities. Section 6 concludes the paper with some remarks on policy lessons.