Difference between FDI And FPI
Basics of FDI & FPI
FDI refers to the investment made by foreign investors to obtain a substantial interest in the enterprise located in a different country. FPI refers to investing in the financial assets of a foreign country, such as stocks or bonds available on an exchange.
Examples
Some of the recent significant FDI announcements in India are as follows:
- In May 2018, Walmart acquired a 77% stake in India’s biggest online retailer, Flipkart is an FDI investment.
- In October 2018, VMware, a leading software innovating enterprise of US, announced an investment of USD 2 billion in India between by 2023.
- In June 2018, an appeal from Idea for 100% FDI was approved by Department of Telecommunication (DoT) followed by its Indian merger with Vodafone making Vodafone Idea the largest telecom operator in India.
- The investment arm of the World Bank Group, i.e., International Finance Corporation (IFC), is planning to invest around USD 6 billion in several sustainable and renewable energy programs in India by 2022
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