{"id":85270,"date":"2025-06-01T03:10:41","date_gmt":"2025-06-01T03:10:41","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=85270"},"modified":"2025-06-01T03:10:41","modified_gmt":"2025-06-01T03:10:41","slug":"which-one-of-the-following-would-be-considered-as-foreign-direct-inves","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-would-be-considered-as-foreign-direct-inves\/","title":{"rendered":"Which one of the following would be considered as Foreign Direct Inves"},"content":{"rendered":"

Which one of the following would be considered as Foreign Direct Investment ?<\/p>\n

[amp_mcq option1=”A foreign company buying shares in stock exchanges in India” option2=”A foreign country pension fund investing in Indian stock markets” option3=”A foreign merchant banker buying shares from Indian stock markets” option4=”A foreign entity setting up an educational institution in India” correct=”option4″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-1 – 2022<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nA foreign entity setting up an educational institution in India would be considered as Foreign Direct Investment.
\n<\/section>\n
\nForeign Direct Investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. FDI typically involves establishing a lasting interest or controlling ownership in a foreign enterprise. This can be done by establishing a new business (greenfield investment) or acquiring a significant stake in an existing one.
\n– Options A, B, and C describe portfolio investment, which involves buying shares purely for financial return without seeking management control. Investing in stock markets (unless it’s a significant stake aiming for control) is typically portfolio investment.
\n– Option D, setting up a new educational institution, involves creating physical infrastructure, employing staff, and operating a business in India, representing a clear instance of greenfield FDI.
\n<\/section>\n
\nFDI is distinct from Foreign Portfolio Investment (FPI). FDI is seen as bringing not just capital but also technology, management expertise, and market access. FPI is more liquid and focuses on short-term financial gains.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following would be considered as Foreign Direct Investment ? [amp_mcq option1=”A foreign company buying shares in stock exchanges in India” option2=”A foreign country pension fund investing in Indian stock markets” option3=”A foreign merchant banker buying shares from Indian stock markets” option4=”A foreign entity setting up an educational institution in India” correct=”option4″] … <\/p>\n

Detailed SolutionWhich one of the following would be considered as Foreign Direct Inves<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1108,1226],"class_list":["post-85270","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1108","tag-external-sector-of-economy","no-featured-image-padding"],"yoast_head":"\nWhich one of the following would be considered as Foreign Direct Inves<\/title>\n<meta name=\"description\" content=\"A foreign entity setting up an educational institution in India would be considered as Foreign Direct Investment. Foreign Direct Investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. FDI typically involves establishing a lasting interest or controlling ownership in a foreign enterprise. This can be done by establishing a new business (greenfield investment) or acquiring a significant stake in an existing one. - Options A, B, and C describe portfolio investment, which involves buying shares purely for financial return without seeking management control. Investing in stock markets (unless it's a significant stake aiming for control) is typically portfolio investment. - Option D, setting up a new educational institution, involves creating physical infrastructure, employing staff, and operating a business in India, representing a clear instance of greenfield FDI.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-would-be-considered-as-foreign-direct-inves\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following would be considered as Foreign Direct Inves\" \/>\n<meta property=\"og:description\" content=\"A foreign entity setting up an educational institution in India would be considered as Foreign Direct Investment. Foreign Direct Investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. FDI typically involves establishing a lasting interest or controlling ownership in a foreign enterprise. This can be done by establishing a new business (greenfield investment) or acquiring a significant stake in an existing one. - Options A, B, and C describe portfolio investment, which involves buying shares purely for financial return without seeking management control. 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