Growth in India has been much faster than that experienced by many other developing economies over the past few decades. Several factors appear to have contributed to this phenomenon including foreign direct investment (FDI) and foreign portfolio investment (FPI). The financial crisis that took place in the year 2008 in US and other Western economies had a serious impact on developing countries around the world. In this paper we are discussing the effect of financial crisis on the inflow of FDI and FPI to India.