Institutional inflows from abroad sped up globalization at the turn of the 21st century in both developed and developing nations. To better understand what has made India an attractive market for FIIs from around the world, the current study studied a time series of data from 2000-2017. The influx of FII (foreign institutional investment) has been crucial to the development of India's financial markets and economy. It is critical for regulators and traders to comprehend the elements that influence FII inflows. Finding out what factors encourage foreign organizations to set up shop in India is the driving force behind this study. By examining a wide range of economic, financial, and regulatory factors, this study will provide insight into the factors that encourage FII inflows and the effects these inflows have on the Indian economy. It was also found in this article that economic risk and financial market risk have very little of a role when it comes to the decision of foreign institutional investment in India.