What is Foreign Direct Investment (FDI)?

Foreign Direct Investment (FDI):

• Definition: Investment made by a firm or individual in one country into business interests located in another country, establishing lasting interest and management control (≥10% equity).
• Entry Routes in India: Automatic Route (no prior RBI/Government approval needed) and Government Route (requires Ministry approval).
• Significance: Brings foreign capital, technology transfer, managerial expertise, and employment creation.