2022 · Q59
Which one of the following would be considered as Foreign Direct Investment?
General KnowledgeIndian Economy
- AA foreign company buying shares in stock exchanges in India
- BA foreign country pension fund investing in Indian stock markets
- CA foreign merchant banker buying shares from Indian stock markets
- DA foreigh entity setting up an educationa institution in India
Explanation
Foreign Direct Investment means a lasting investment with management control — e.g., a foreign entity setting up an educational institution in India. Buying shares on stock exchanges (options A–C), even by pension funds or merchant bankers, is portfolio investment (FPI), not FDI.