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How revised FDI policies can be a good driver for the Indian Economy?

How revised FDI policies can be a good driver for the Indian Economy?

Intending to prevent opportunistic takeover on Indian organizations shrunk due to the covid-19 pandemic, the Indian government recently made some modifications in its FDI policy where it is mandatory to have government approval for foreign investment from other nations sharing borders with India. While this would affect numerous nations which are sharing a border with India. China is most affected by the changes as it is aggressively investing in India for the past many years. These FDI policy modifications have…

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FDI- A Critical Driver of Indian Economy

FDI- A Critical Driver of Indian Economy

Foreign direct investment, in its simplest definition, is a type of investment by a foreign investor, into a business based in another country. One characteristic that differentiates FDI from FPI or foreign portfolio investment is ‘lasting interest’ Therefore, FDI is not just the transfer of funds to a business based in another economic market, it also controlling ownership and an interest into the activities of the business. To ensure controlling ownership, a foreign investor is given at least 10 per…

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How Does Foreign Direct Investment Help Indian Economy?

How Does Foreign Direct Investment Help Indian Economy?

Foreign direct investment is a crucial driving force of economic growth and development of the country. It plays a significant role where domestic savings are not sufficient to generate funds for capital investments. Yes, FDI supplements the investment requirements of an economy, but it does more than that. Foreign investment also brings with it new technology, expertise, knowledge, and adds to foreign exchange reserves. Foreign investment equity inflows are particularly valuable to developing economies, as compared to the developed economies….

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