What is the full form of FDI:

FDI represents Foreign Direct Investment.

It is an investment made by a company which is not located in the same country in which the investment is made. This investment gives an ownership of an enterprise which is located in any other country. It is called as a direct investment because, the investing company is a foreign entity and it will control the business of any other country.

FDI plays a very important role in the global business and affects the economy of the country tremendously. FDI can be done in different sectors like retail, production, manufacturing, construction, services, consultancy, telecommunication, hardware and software of computers etc.

As per the government, Foreign Direct Investment is helpful in building new facilities, merging multiple companies and getting acquisition, the profits which will be earned can be reinvested in the same company, and also the intra company loans can be easily handled.