Foreign Direct Investment
FDI
Intermediate Level
India
International Trade
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Definition
Investment by a foreign entity in a domestic company, typically acquiring significant ownership stake.
Detailed Explanation
FDI differs from portfolio investment as it implies lasting interest and control. India allows 100% FDI in many sectors via automatic or government approval route. Key sectors include IT, manufacturing, retail.
Example
Walmart's $16 billion acquisition of Flipkart was the largest FDI in India's e-commerce sector.
Local Context (India)
India received $84 billion FDI in 2022-23, with services, manufacturing, and IT being top sectors.