Recently, India, as a world newly emerging market, has drawn a large amount of FDI from abroad. The sources of investment are diversified and the multi-international corporations have become the main forces of its investment. Locations and regional advantages are the focus of their choices. The investment is mostly put into industries of market-orientation and least of the infrastructure. From this article, China can learn a lot from India. China should choose the proper industries for foreign investment and adopt the model of putting the investment on foreign-trade-orientation industries. China should also take great measures to strengthen mutual cooperation to draw more foreign investment on industries of processing and assembling, to develop more contract projects, to encourage small and middle-typed enterprises to join with foreign investment and to take precautious measures to prevent investment risks.
