What Does FDI mean - Information About FDI

#1. What does FDI mean - Information About FDI.

What Does FDI mean - Information About FDI For a country to be financially strong, it is necessary for that country to get the trust of other countries. For this, the law of the country is made simple and flexible, so that the foreign investor is attractive to that country and can invest in that country. The law of investing is made in such a way that the economic condition of the country is strong and the investor also gets benefits. 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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#2. Full Form of FDI

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

#3. What is the meaning of FDI ?

FDI means that any person or company outside India can invest in any company in India or set up his own company. Foreign investors can buy shares or bonds of an Indian company. Any profit made on investing can take the profit and principal back to their home country, this is called 'Reportable Basis'.

Types of FDI

There are mainly two types of FDI-

• Greenfield investment
• portfolio investment

#1. Green Field Investment

A new company is established in another country under green field investment.

#2. Portfolio Investment

Under Portfolio Investment, the company's shares are bought or the country's company is acquired in the country where the investment is to be made.

#4. FDI Confidence Index

The survey and global management consultancy is done by AT Kearney Institute as per the norms of FDI. This institute is a leading global management consulting institute, through which survey reports are issued every year. 

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This index is determined according to the economy of many countries of the world, in this survey the corporations or companies of that country are included whose income is $ 500 million or more. In this index, the probability of foreign direct investment of a country in the next three years is calculated by weighting mean of high, medium and low response.

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