Foreign Institutional Investment Suggests Investments Made By Individual Investors or Companies In Foreign Lands. India Has Been Observing a Surge In Fii Activity Since the Opening of Its Capital Markets. Owing to Its High Increase Prospective, India Has Become a Preferred Purpose For Fii Activity. Fiis, Convinced of India’S Economic Growth and Strong Corporate Earnings, Are Continuously Investing In the Country. Fast Gdp Growth Has Made India a Preferred Destination For Foreign Investors Post the 2008 Financial Crisis. In 2010 Itself, India Attracted Nearly Us$ 30 Billion of Net Foreign Inflows, Which Was Just Under 50 Per Cent of All Inflows into Promising Asian Markets, Excluding China. Foreign Investors Have Invested Rs 6,460 Crore (Us$1.45 Billion) In Indian Stock Markets In Just Five Trading Sessions of July 2011.In the First Six Months of 2011, Overseas Investors Infused Around Rs 17,000 Crore (Us$3.82 Billion) into the Indian Market, Including Stocks and Bonds. In the Same Period, Fiis Made Investments of Rs 9,948 Crore (Us$2.23 Billion) In the Debt Market, With Investments In Stocks Being Rs 2,670 Crore (Us$ 599.79 Million).This Paper Analyses the Role Ahead For the Foreign Institutional Investors In the Present Indian Economic Scenario With the Focus on the Impact on the Indian Capital Market.