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FDI in Indian Economy, FDI in the financial year 2021-22 has touched a…
FDI in Indian Economy
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Features of FDI
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In FDI, the foreign entity has a say in the day-to-day operations of the company.
FDI is when a foreign entity acquires ownership or controlling stake in the shares of a company in one country, or establishes businesses there.
It is not just the inflow of money, but also the inflow of technology, knowledge, skills and expertise.
Any investment from an individual or firm that is located in a foreign country into a country is FDI
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Advantages of FDI
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It helps with technology spillovers, human capital creation, and international commerce integration
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Disadvantages of FDI
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By moving resources elsewhere, it can sometimes impede local investment
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India and FDI
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FDI source in decreasing order: Singapore – Mauritius – Netherland – Ceyman Islands – Japan – France
1991 financial crisis, India began to liberalize its economy
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