FDI is primarily distinguished by the level of equity investment (typically >=10%) and the intent to gain control or significant influence, irrespective of the specific instrument used (equity shares, convertible instruments, etc.).
Consider the following : 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-resident external deposits Which of the above can be included in Foreign Direct Investments?
Asked in UPSC IAS 2021 · Topic: Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) (Definition, Features, and Distinction between FDI and FPI)
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Answer: A. 1, 2 and 3
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