India is now the world’s 21st largest outward investor, which is significant given its historically miniscule foreign direct investment (FDI) outflows. Indian firms are once again increasing their overseas investment, including through mergers and acquisitions (M&As). India’s OFDI should continue its rapid upward trend overcoming its policy barriers and emerge as a sturdy economy of the world. In this backdrop the present paper will discuss How outward FDI will help realize India its true potential of economic growth on world’s arena highlighting its significance, motives, trends and also issues concerned.