Economics · External Sector

Which one of the following would be considered as Foreign Direct Investment (FDI)?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1A foreign company buying shares in stock exchanges in India below 10% portfolio limit
2A foreign country pension fund investing in Indian stock markets
3A foreign merchant banker buying shares from Indian stock markets
4A foreign entity setting up an educational institution or manufacturing facility in India✓

Correct answer

A foreign entity setting up an educational institution or manufacturing facility in India

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