Foreign direct investment plays an important role in economic growth and generating employment in a globalized world. It is one of the major stimuli to economic development of the developing countries. But the distribution of FDI is unequal all over the world. Some countries are ahead, while others lag behind in attracting foreign direct investment. Bangladesh is a potential country for receiving a good amount of FDI, but the results are not satisfactory. Inflow of FDI in a host country would depend upon how much incentives are given by the host countries. This study highlights the present FDI policies and incentives offered by the Government of Bangladesh for attracting FDI and it also focuses on the trend of FDI inflows.

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