TOPIC-FOREIGN DIRECT INVESTMENT
Q. What is a Foreign direct investment and what are its types?
- Foreign Direct Investment (FDI)-Meaning-
In a broader sense Foreign direct investment includes- Mergers and Acquisitions, building new facilities, reinvesting profits earned from overseas operations but in a narrow sense it just means building new facilities.
FDI basically is a direct investment into business or production in a country by a company in another country, either by buying a company in another country or by expanding operations in the other country of a business which is already in existence.
- Foreign Direct Investment in India-(types)-
FDI in India is primarily of the following types-
- Foreign Direct Investments
- Foreign Portfolio Investments
- Foreign Venture Capital Investments
- Investments on Non-repatriable basis.
- Who can make Foreign Direct investments?
FDI can be made by persons resident outside India. According to the Government regulations and rules the FDI may come under automatic route(not requiring prior approval) or Government route(requiring approval).
Indian Kanoon – Foreign Direct Investments (Idea)