This article examines, in Indian context, the interdependence of three important economic elements viz. ‘foreign aid’ (FA); and the resultant ‘technological innovation’ (TI) and ‘entrepreneurship and employment generation’ (E&E). FA is essentially a structural concept that embodies the other two elements. The concept is frequently presumed to exist and is rarely attempted to be defined. The article attempts to define it and extend our thoughts at the intersection of foreign assistance, technology and employment. The complex nexus mainly concludes the existence of two interdependent flow processes. The processes are differentiated based on mediation of any of the resultant scenarios of FA i.e., TI and E&E. Although interdependence is found among almost all of the variables under study, the major findings are FA affects domestic entrepreneurship; medium and high-tech exports in the country are provided by both foreign and domestic investors; and such exports can create job opportunities in the service sector.