Foreign direct investment
Also called: FDI
Investment from abroad that takes a lasting stake in a business, such as building factories, setting up subsidiaries or acquiring control.
Direct investment moves slowly and is hard to reverse, unlike portfolio investment. The boundary between the two is set by rules based on the size of the stake, which can change.
Learn more in these lessons
- Foreign investment flowsDo foreign investors move the Indian market, and should you follow them?
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