Indian Economy
Foreign direct investment
Cross-border investment giving a foreign investor lasting control of an enterprise
Overview
Foreign direct investment (FDI) is an ownership stake in a company, made by a foreign investor, company, or government from another country. More specifically, it describes a controlling ownership of an asset in one country by an entity based in another country. The magnitude and extent of control, therefore, distinguishes it from a foreign portfolio investment or foreign indirect investment. Foreign direct investment includes expanding operations or purchasing a company in the target country.
Source: Wikipedia — Foreign direct investment (CC BY-SA)
Key concepts
How Foreign direct investment connects to the ideas, people and events around it.
A controlling interest is an ownership interest in a corporation with enough voting shares to prevail in any stockholders' motion. A majority of voting shares is always a controlling interest.
A foreign portfolio investment is a grouping of assets such as stocks, bonds, and cash equivalents. Portfolio investments are held directly by an investor or managed by financial professionals.
Revise Foreign direct investment
Flashcards and a quick quiz, built from this map.
Questions about Foreign direct investment
What is Foreign direct investment?
Foreign direct investment (FDI) is an ownership stake in a company, made by a foreign investor, company, or government from another country. More specifically, it describes a controlling ownership of an asset in one country by an entity based in another country. The magnitude and extent of control, therefore, distinguishes it from a foreign portfolio investment or foreign indirect investment.
What are the key concepts related to Foreign direct investment?
The main concepts connected to Foreign direct investment include Controlling interest, Foreign portfolio investment. Each is linked on the map above with its own summary.
Which exams cover Foreign direct investment?
Foreign direct investment is part of Indian Economy, which appears in the syllabus of UPSC CSE, UPSC CAPF, NDA, CDS, AFCAT, SSC CGL and 58 more exams.