<b>FDI in Indian Education Sector An Analytical Study</b> In today’s liberalised economy, FDI has a crucial role in the development of an economy. FDI is one the external factors affecting an economy’s development whereas education is one of the internal factors that affects the economy. As per the census in 2011, literacy rate in India is 74 . India has the 3rd largest higher education sector in the world after China and the U.S. Indian education sector has been acknowledged as the “Sunrise sector” for investment . With the increasing population of India, people’s point of view regarding education has changed as well. On the other hand government and FDI in education sector plays an important role in it. India has emerged as a service based and knowledge based economy giving preference to growth of human capital. This paper analyses FDI trend in Indian education sector. The paper gives insight about the impact of FDI in Education onenrollment at secondary and higher level of education. Finally, it helps us understand how the combined efforts of India and other nations help in improving Indian education sector. The research approach is exploratory in nature. This paper has major implications for educationists who intend to reap the benefits of FDI as well as the Government who need to frame suitable policies. FDI, Higher Education, Government, enrollment 1566-1572 Issue-4 Volume-2 Arushi Chawla