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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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