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Foreign Direct Investment: Net FDI Hits 45-Month High in Feb 2026 – Key Facts for UPSC

Context: Foreign Direct Investment

Net FDI turned positive in February 2026, reaching a 45-month high after six months of decline.

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PYQ – 2021, Ans – A

Foreign Direct Investment

  • Definition: Foreign Direct Investment is an investment made by a foreign entity in a domestic enterprise with the objective of establishing lasting interest and significant control (generally 10% or more ownership)
  • Types: Greenfield, Brownfield
  • Components: Equity, reinvested earnings, other capital
  • Significance: Growth, jobs, technology

Key Points

  • Net FDI: $4.6 billion
  • Gross FDI: +61.6% (~$9 billion)
  • Rise mainly due to sharp fall in outflows (lower repatriation + outward FDI)
  • Key sectors: Manufacturing, services
  • Top sources (Economic Survey): Singapore, Mauritius, USA
  • Greenfield attractiveness remains, but announcements declined
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Foreign Direct Investment: Net FDI Hits 45-Month High in Feb 2026 – Key Facts for UPSC

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