Question

Meaning and importance of fdi in economic development of india

Answer 1

FDI stands for Foreign Direct Investment.

FDI is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased.

(1) It acts as a catalyst in development of Indian economy .
(2) With strong support from the government,FDI has helped the Indian economy grow tremendously.
(3) There is an increase in capital inflows and exports in India due to FDI.
(4) It has led to promotion of financial services and employment opportunities.
(5) It has brought in new technologies and has developed backward areas of India.