The issue of differentiating between FDI and FPI is related to the functional aspects of the investments. The internationally adopted definition which relies on a numerical benchmark of 10% is thus of limited practical utility for policy makers. However, because of its widespread adoption and...

While India has generally been following an open door FDI policy, a few areas are still subject to caps on FDI and or specific government approval. One of the justifications for the same is the need to retain a degree of control over the operations of the investee companies in Indian hands....