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In the economic term 'FDI', what does the letter 'F' stand for?
Foreign
Fiscal
Federal
Financial
Foreign
FDI stands for Foreign Direct Investment, which refers to an investment made by a firm or individual in one country into business interests located in another country. It represents a long-term participation in the management and control of an enterprise in a foreign nation.
FDI stands for Foreign Direct Investment, which refers to an investment made by a firm or individual in one country into business interests located in another country. It represents a long-term participation in the management and control of an enterprise in a foreign nation.
The FEMA (Foreign Exchange Management Act) of 1999 governs all foreign exchange transactions in India, replacing the stricter FERA of 1973 to facilitate external trade and payments.
FDI is considered a 'stable' form of investment compared to FPI (Foreign Portfolio Investment) because it involves physical assets and long-term interest.
In India, FDI is primarily regulated by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
Automatic Route vs. Government Route are the two main pathways for FDI entry in the Indian economy.
FPI (Foreign Portfolio Investment) involves buying stocks or bonds, which can be quickly liquidated, making it more volatile than FDI.
Greenfield investment is a form of FDI where a company builds its own operations from the ground up in a foreign country.
Option B (Fiscal) relates to government revenue and taxation policies, such as the Fiscal Responsibility and Budget Management (FRBM) Act.
Option C (Federal) refers to the constitutional division of power between the Union and the States in India.
A is correct тАФ The term FDI stands for Foreign Direct Investment, a key driver of economic growth and capital infusion in India.
When studying Economy, always distinguish between FDI (long-term control) and FPI (short-term portfolio holding), as this is a frequent point of comparison in exams like UPSC and SSC.
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