What do you understand by foreign direct investment? In recent time inflow of FDI has improved, however it remain low with respect to China. What are the reasons and suggest some measures.
Answer: Foreign direct investment is - when a company takes controlling ownership in a business entity in another country. With FDI, foreign company can be directly involved with day to day operation and provide not only money but also knowledge, skill and technology.
In India, after economic liberalization during 1991 crisis, inflow of FDI has steadily increased. In fact, in last five years, India ranked fifth among nations for receiving FDI. India has received highest ever total FDI inflow during 2020-21. Computer, software has attracted the highest FDI, followed by construction and services.
Though, the inflow of FDI has increased ....
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