What is the difference between Foreign Direct Investment and Foreign capital investment by giving example if any ?Explain FCI was allowed 100% by export houses?
Foreign capital investment means investment made by foreign entities and foreign individuals in the form of equities, joint ventures with domestic corporations, angel investing etc. In foreign capital investment,usually, the investments are made in an indirect manner i.e, the foreign entity cannot have full control over the business operations in which they have invested the money.
On the other hand, FDI refers to the investment made by a foreign country in the domestic country to acquire control and ownership of their business in the domestic country.
100 % FCI was allowed for export houses means that the export houses could rely solely on the capital investments made by foreign entities and individuals for their investment purposes in their business. This was done to penerate the exports under the economic reforms.
On the other hand, FDI refers to the investment made by a foreign country in the domestic country to acquire control and ownership of their business in the domestic country.
100 % FCI was allowed for export houses means that the export houses could rely solely on the capital investments made by foreign entities and individuals for their investment purposes in their business. This was done to penerate the exports under the economic reforms.