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Foreign Direct Investment
June 06 , 2012

Consider the Coca Cola Company in India. The parent company in the US entered the Indian market to expand its operations here. It has set up plants and entire management and sales teams to run operations here. This is a typical Foreign Direct Investment (FDI) - ownership and management of Indian companies and operations by a foreign company.

Unlike FII, FDI is interested in joint ventures or even in solely running their Indian operations. Sometimes, however, the Indian Government restricts which sectors or companies FDI can get involved in. There are caps on FDI in sectors such as insurance, retail and media.

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