China's joining of WTO in 2001 has completely changed its economic structure and its entry in WTO proved to be a landmark event in the global economy. As a result, China's trade relations with the world have improved significantly particularly with India. Both, India and China are the fastest growing economies in the world since they have grown at rate of 8% and 10% GDP respectively. The total trade between India and China was reached to $60 billion in 2010. However, the major change in the trade relations between India and China has come after China's joining of WTO in 2001. In the above background, this paper is divided into three parts. The first part of the paper examines the direction of foreign trade of China after becoming a member of WTO and, the second part analyzes India's trade relations with China (Pre and Post China's joining of WTO). The final section of the paper delineates the major constraints between India and China for improving trade relations.

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India needs FDI as a constituent of its tactical investment for acquiring and prolonging Economic Reforms, tempo and developmental economic growth. It was initially low due to frame work of policy regulation. However, from 2005, it jumped up in its output till date; credit goes to the new policy. Research is on to make out the rigorous improvement of Indian economic development by means of incentives that out par the previous ones, attractive such as Human Capita Transfers, Domestic Investment etc. The sole motive of the research is to highlight the consequence of FDI on economic growth in India through the pivot of investments in different spheres in India.