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Despite few FDI friendly policies and many incentives including Dunning's three advantages; Ownership, Location and Internalization advantages which have strong impact on FDI inflows in the host country, Bangladesh is not being able to earn satisfactory amount of FDI in the recent years while neighbouring India with many similar policies is earning highest amount of FDI in South-Asia. Hence, to find the causes behind the poor performance of Bangladesh in comparison with that of India and to discover the prospect of FDI in Bangladesh this book focuses on four issues which are (1) the impact of FDI in economic development of Bangladesh (2) unexplored potential sectors in Bangladesh for FDI attractions (3) the impact of government policies on FDI inflows in Bangladesh and (4) comparative policy analysis between India and Bangladesh to find the extent to which the differences in policies create the differences of FDI inflows between these two countries.