Which of the following would include Foreign Direct Investment in India?
- 1. Subsidiaries of companies in India
- 2. Majority foreign equity holding in Indian companies
- 3. Companies exclusively financed by foreign companies
- 4. Portfolio investment
Select the correct answer using the codes given below:
- 1, 2, 3 and 4
- 1, 2 and 3 only
- 2 and 4 only
- 1 and 3 only
Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.
The correct option is B.