Question

What are the key features of Foreign Direct Investment (FOI) in India? Distinguish between Direct and Portfolio investments, clearly pointing out their respectives key characteristics.

28 Oct 2017
Answer :
Word Count : 346

Foreign Direct Investment (FDI) in India encompasses several key features that distinguish it within the international business environment. FDI refers to the investment made by foreign entities in Indian businesses or assets, leading to significant control, management, and influence over the invested entity. Here are some key features of FDI in India:

1. Long-term Investment: FDI involves a long-term commitment by foreign investors in Indian businesses. It's not merely about buying stocks but involves establishing a lasting interest in the operations and management of the invested entity.

2. Strategic Control: Foreign investors, through FDI, often acquire a substantial degree of control and influence in the invested company, enabling them to participate

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