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FDI, which stands for Foreign Direct Investment is also referred to as foreign investment actually means the inflow

of the total investments in any enterprise or ongoing business, which is operating for the growth of the countrys economy. The investments are the summation of longterm money or capital, equity capital, earnings, and also short-term money. These investments are incorporated in the various sectors like the infrastructure developmental projects. These kinds of projects include arenas like flyovers, bridges, offices, industries and much mire. The investments in other sectors include financial sectors that incorporate insurance services and banking and also retail sector and other real estate developmental projects. Apart from these realms, the investments are included in many other different realms. Coming to the precise definition of FDI, it is referred to the productive investments by any foreign country into any countrys productive assets. But the whole thing involves many different kinds of policies and strategies that need to be followed to understand how the Foreign Direct investment works. FDI actually involves any kind of participation in any kind of transfer of technology, management, expertise and joint-venture.

The Different Types of FDI Investors


If you are wondering who can be the FDI investor, then it can be any individual or a particular group of related people or individuals, or a big or small group of inter-dependant enterprises, any private or public company, unincorporated or incorporated entity, any government body, or a social institution, or trust or an estate. Besides, a combination of any two or three or more than that can be the real investors. It completely depends upon the situation and also the different policies.

Prior to investing, the FDI investor has to acquire proper voting power of the enterprise it is interested present in the economy. But there are certain methods through which the whole process is conveyed. The first method include that the FDI investor has to include into a totally owned company or subsidiary. Besides, the investor can also gain voting power through acquiring shares in any enterprise with which it is associated with. Apart from the above two methods, the FDI investor can gain voting power through the acquisition of various enterprises which might not be related or through shaking hands with another investor in equity kind of joint venture. The above are some of the methods that show how a FDI investor can actually gain voting power of the different enterprise in its economical status. Now, you are going to see the FDI from the Indian perspective so as to get a clearer picture.