A foreign direct investment (FDI) is an investment made by a firm or individual based in one country into a business located in another country. Under FDI, an investor does not simply purchase equities of foreign-based companies but establishes foreign business operations or acquires foreign business assets— the former is called foreign portfolio investments, which is differentiated from foreign direct investment in terms of lasting interest. The foreign investor is given at least 10 per cent voting rights in the…

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Foreign direct investment or FDI is when a foreign entity (an individual or a firm) invests into a business of another country. It is not simply a flow of investment in the form of monetary funds from one country to another; FDI comes with the notion of a controlling ownership of a business based in another country. Recently, foreign direct investment norms were reformed by the current government in order to combat the sagging economy. The cabinet approved a few…

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An integral part of a country’s economic development, foreign direct investment has a direct positive impact on domestic capital, productivity, and employment. This is the reason why FDI has become an indispensable tool for initiating economic growth for countries. In order to facilitate economic development, the government of India had decided to liberalize norms and policies for overseas investments in 1991. FDI in India has effectively contributed to the overall growth of the economy. Apart from being a critical driver…

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