What does FDI mean?

Information about FDI

For a country to be economically strong, that country must get the trust of other countries. For this, the laws of the country are made simple and flexible, so that foreign investors become attractive towards that country and can make their investments in that country. The law of investment is made in such a way that the economic condition of the country is strong and the investor also gets profit. For this, FDI has been started by the government. On this page, information is being given about what is the meaning of FDI, FDI confidence index, full form of FDI. 

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Full name of FDI

The full form of FDI is “Foreign Direct Investment”, in Hindi language it is called Foreign Direct Investment.

What does FDI mean?

FDI provides the possibility to individuals or institutions from outside India to invest in Indian companies or set up their own enterprises. Foreign investors have the option to buy shares or bonds of Indian companies. They can take back both the profits and the principal amount earned from their investments to their respective countries, on what is known as ‘repatriable basis’.

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Types of FDI

There are mainly two types of FDI-

• Greenfield investment
• portfolio investment

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ग्रीन फील्ड निवेश

Under green field investment, a new company is established in another country.

portfolio investment

Under portfolio investment, shares of the company of the country in which the investment is to be made are purchased or a company of that country is acquired.

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foreign direct investment confidence index

Survey and global management consultancy as per FDI standards is conducted by AT Kearney Institute. This institute is a leading global management consulting institute, it releases reports through surveys every year. This index is determined according to the economy of many countries of the world, in this survey the corporations or companies of that country whose income is 500 million dollars or more are included. In this index, the probability of foreign direct investment of a country in the next three years is calculated by taking the weighted average of high, medium and low responses.

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