What is the full form of FDI?

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    • Foreign Direct Investment is a direct investment in the production or business of one country by a company or individual from another country. It is an indication of the prosperity and credibility of a country in the eyes of foreign investors. The pros of FDI is the creation of jobs, improvement in infrastructure and investment. The cons of FDI is increased competition for home grown country and flow of cash from home country to foreign country. FDI can be of three types: 1. Horizontal FDI, 2. Platform FDI and 3. Vertical FDI.

      India has allowed FDi in only certain sectors and partial FDI in other sectors. From time to time Indian government reviews its FDI policy to ease up the norms of FDI in certain sectors.

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