F.D.I.

- It stands for Foreign Direct Investment.


- FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.


- It is of three types:
- Horizontal FDI
- Platform FDI
- Vertical FDI


- In India, FDI was introduced in 1991 under Foreign Exchange Management Act.


- It is different from Foreign Portfolio Investment, where the foreign entity merely buys equity shares of a company.


- In FDI, an foreign entity has a say in day to day operations of the company.


- FDI brings new technologies, skills, knowledge, etc. along with money for a country.





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