In India, the banking industry is incredibly dominating. Due to globalization, Indian banks compete on the basis of their cutting-edge goods and strong financial standing. Since India embraced economic reforms in 1991, the Indian banking system has advanced significantly. Foreign direct investment is being sought after as a vehicle for technology transfers, as a way to achieve competitive efficiency by building a significant global connectivity network, and as a source of non-debt inflows. FDI has made a significant contribution to the improvement of the Indian banking sector's efficiency, the development of novel financial products, and the improvement of banks' capitalization by making them more flexible to changing market conditions.