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Foreign investment has played a significant role in shaping India’s economic growth, particularly since the liberalization of the Indian economy in 1991. Both foreign direct investment (FDI) and foreign portfolio investment (FPI) have contributed to enhancing India’s industrial capacity, technological capabilities, and overall economic competitiveness. FDI involves long-term investment by foreign entities in Indian businesses, often bringing in not just capital but also expertise, management practices, and access to international markets. FPI, on the other hand, focuses on investment in Indian financial assets like stocks and bonds, thereby supporting capital markets and enhancing liquidity. One of the primary benefits of foreign investment in India is the inflow of capital which supplements _______ ________ ______ ___ _________.
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