Which of the following would include Foreign Direct Investment in India?
- Subsidiaries of foreign companies in India
- Majority foreign equity holding in Indian companies
- Companies exclusively financed by foreign companies
- Portfolio investment
Select the correct answer using the codes given below:
[UPSC Civil Services Exam – 2012 Prelims]
(a) 1, 2, 3 and 4
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2 and 3 only
- A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.
- The following include FDIs-
- Subsidiaries of foreign companies in India.
- Majority of foreign equity holding in Indian companies.
- Day to Day operations of the company.
- It is a major source of nondebt financial resources.
- Companies exclusively financed by foreign companies.
- Hence 1, 2 and 3 are correct.