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The present study attempts to explain the effects of foreign portfolio flows on some macroeconomic variable in India using the time series data between 1992 to 2011. The study examines the impact of foreign portfolio flows on economic growth. This study also examines the trends, structure and composition of foreign portfolio investment in India. Foreign portfolio investment in the India economy has introduced some serious problems of macroeconomic management for policy makers. It is self evident fact that foreign portfolio investment has contributed to the development of the capital market of India and thereby the development of the economy as a whole. From the result of this study the entry of foreign portfolio investment will boost Indian Stock Market.