Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.
Method of Foreign Direct Investment
Foreign direct investments can be made in a variety of ways, including the opening of a subsidiary or associate company in a foreign country, acquiring a controlling interest in an existing foreign company, or by means of a merger or joint venture with a foreign company investment.
FDI Inflows Jump 53 Per Cent In Last 2 Years in India
India saw a record 53 per cent increase in FDI in last two years as the investment climate brightened due to steps taken to foster growth, price stability and fiscal prudence which also improved the overall macroeconomic stability.
In the last two years, there has been 53 per cent rise in FDI into the country, which is a record high.
Many sectors have been opened up for Foreign Direct Investment over the years starting from 1991. In addition to opening up more sectors for FDI, related conditionalities have been smoothened by this government, the minister said.
Improving the ease of doing business is a "work in progress", he said, adding that measures have also been initiated to ensure that the system itself is more transparent.
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