The Foreign Direct Investment is a main source of capital fund for different economies and leading source of external financing. In India, the liberalization of FDI policies offers opportunities as well as threats for firms. It is also observed that FDI has an impact on the growth, performance and efficiency of the firms as well as its contribution to the nations economy. The most important issue is the difficulty in choice FDI policies is faced by most of the countries. This is mostly due to conflicting objectives such as desire for rapid growth along with desire for equitable distribution of income. The present study focuses on assessing the impact of FDI on the growth of select firms measured in terms of forex earnings, sales, profit and assets. For the present study firms aggregates of the FDI based pharmaceutical firms are considered. The study is carried out for a period of 10 years from 2000-01 to 2009-2010.

FDI, Liberalization, Pharmaceutical firms, FDI firms, Aggregates.