Foreign Direct Investment
Foreign direct investment (FDI is an important driver of economic growth as it leads to productivity enhancement and is a major source of non-debt financial resources and employment generation. FDI inflows are critical for sustaining a high growth rate. The government is playing a proactive role in investment promotion through a liberal FDI policy. A favourable policy regime and sound business environment have facilitated increase in FDI flows into the country.
A foreign direct investment (FDI) is an investment made by a company in one country, into a company in another country. FDI is the sum of equity capital, other long-term capital, and short-term capital as shown in the balance of payments. It usually involves participation in management, joint-venture and transfer of technology. In India Foreign investment was introduced in 1991.