CURRENT AFFAIRS

Detailed explanation-1: -Foreign Direct Investment (FDI) from the viewpoint of the Balance of Payments and the International Investment Position (IIP) share a same conceptual framework given by the International Monetary Fund (IMF).

Detailed explanation-2: -A foreign direct investment refers to a purchase of a particular organisation’s interest by another foreign organisation. Such an organisation or investor is located in a different country than the organisation whose interest is purchased.

Detailed explanation-3: -Foreign direct investment (FDI) in India was introduced in the 1991 under the Foreign Exchange Management Act (FEMA) implemented by the then finance minister, Dr. Manmohan Singh. It commenced with the baseline of 1 billion dollars in 1990.

Detailed explanation-4: -Foreign Direct Investment (FDI) is the investment through capital instruments by a person resident outside India (a) in an unlisted Indian company; or (b) in 10 percent or more of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company.