Discussion
What is the full form of "FDI"?
Answer: B
Correct answer: Foreign Direct Investment
FDI stands for Foreign Direct Investment - an investment made by a firm or individual in one country into business interests located in another, either by establishing operations there or by acquiring a lasting interest in an existing enterprise. The defining feature is control rather than mere ownership: the investor takes a stake large enough to influence management, which is what separates FDI from Foreign Portfolio Investment (FPI), where shares are held purely for returns. In India, FDI is regulated under FEMA and is permitted through two routes - the automatic route, which needs no prior government approval, and the government route, which does. The keyed option originally read “Fixed Deposit Income”, which is not an expansion of FDI at all; it has been corrected here.
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