Q12 · UPSC current affairs · 8 October 2026 · PIB · India-U.S. Trade and Investment Engagement

← Q11

What does the term 'Foreign Direct Investment' (FDI) signify?

A Short-term speculative portfolio investments made exclusively in domestic stock markets.
B Government-to-government concessional loans provided for infrastructure development.
C Investment made by a firm or individual in one country into business interests located in another country.
D Alternative investment capital that is restricted from being listed on public exchanges.

Correct answer: (c) Investment made by a firm or individual in one country into business interests located in another country.

Explanation

Option C is correct as FDI represents investment made by a firm or individual in one country into business interests located in another country. Option A refers to FPI/portfolio investment, and options C and D describe public debt and private equity respectively.

Same topic · past papers

UPSC has asked this before

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