Foreign Direct Investment (FDI) is both a boon and bane. Comment
Answer: FDI is the investment through equity instruments by a resident outside India in an unlisted Indian company; or in 10% or more of the post-issue paid-up equity capital on fully diluted basis of a listed Indian company.
- FDI into India reached an all-time high of $83.57 billion in 2021-22.
Fdi - A Boon
- Stable source of non-debt finance, promoting economic and infrastructure development.
- Source of technology transfer for efficient production.
- Brings in knowledge and skills necessary for human resource development.
- Helps in global integration of the economy.
- Increases employment opportunities.
- Promotes innovation and competition.
- Helps in maintaining exchange rate stability by increasing capital inflow ....
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