← GlossaryTrade & Currency
Foreign Direct Investment (FDI)
FDI is investment by a foreign company in a lasting interest in an Indian business, such as building a factory, setting up an office or buying a significant stake. Unlike portfolio investment, it is slow to leave.
Why It Matters
FDI brings capital, technology and jobs, which is why governments compete hard for it.
In India
Apple’s suppliers setting up iPhone factories in Tamil Nadu and Karnataka are a major example of FDI in manufacturing.