Question
With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?
Attempt this previous-year question. The correct option stays hidden until you choose.
With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?
Pick an option to check yourself.
• Correct Answer: B
• FDI is equity-based and non-debt creating, avoiding external debt burden.
• FPI/FII investment in listed securities or government bonds is portfolio investment, not FDI.
• Debt-servicing applies to loans, not equity.
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