FDI Full Form is Foreign Direct Investment. When investment is made in a company of one country by another country, it is called FDI. This law of India provide facility to any non-Indian or non-Indian company. It is also known as foreign investment. An investor who invests in FDI buys some part of the management of that company. And that investor becomes a member of the management of that company.
The investor can buy the investments of that company, buy bonds or even open their new factory. The investment made by FDI in a company is known as direct investment and the investment made will be treated as FDI only if the investor purchases 10% of the company.
• Due to FDI, we can easily get finance from Wealthier Countries without worrying about the Borders.
• The country where FDI is received, helps in getting good job opportunities, high standard of living, strong infrastructure as well as economic development.
• FDI also reduces the cost of production significantly.
• It also brings new skills and technologies in the country.