Which of the following would include Foreign Direct Investment in India?
1. Subsidiaries of companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment
Which of the following would include Foreign Direct Investment in India?
1. Subsidiaries of companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment
Answer:
(d)
Core Books/NCERT
Foreign Direct Investment (FDI) involves investment from a foreign entity into a business in India, leading to a lasting interest and control. This includes subsidiaries of foreign companies, majority foreign equity holding in Indian companies, and companies exclusively financed by foreign entities. Portfolio investment, on the other hand, is a passive investment in securities and is not considered FDI. Therefore, the correct answer is (d) 1, 2 and 3 only.