JAIIB | IE AND IFS | TYPES OF FOREIGN DIRECT INVESTMENT (FDI) – CASE STUDY

Join us at Learning Sessions and be at the forefront of banking transformation. Foreign Direct Investment (FDI) has been one of the major factors driving India’s economic growth and development. FDI not only brings in much-needed capital but also contributes to technology transfer, skill development, and infrastructure enhancement. For JAIIB (Junior Associate of Indian Institute of Bankers) applicants, having knowledge about the different types of FDI is essential for analyzing how foreign investment impacts the Indian economy (IE) and the Indian financial system (IFS). In this article on the case study, we explore the types of FDI, their significance, and their role in shaping India’s economic landscape.

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Types of Foreign Direct Investment (FDI):

-Greenfield Investment: It is a type of FDI where a foreign entity sets up new operations in a country from scratch. 

-Brownfield Investment: It refers to FDI where foreign entities invest in existing businesses, infrastructure, or assets in the host country. 

-Vertical and Horizontal FDI: It can also be categorized into vertical and horizontal types based on the relationship between the foreign investor and the host country’s industry:

-Strategic FDI: It involves foreign investments that are made with a long-term focus on gaining strategic advantages in key sectors.

-Joint Ventures and Mergers & Acquisitions (M&A): These are common forms of FDI that involve collaboration between a foreign investor and a domestic company.

For the extensive preparation of candidates, get details through our YouTube videos for JAIIB IE & IFS Module wise Syllabus with explanations and tips to help candidates in their preparation journey.

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To sum up, Foreign Direct Investment (FDI) plays an essential role in the growth and development of the Indian economy (IE) and the Indian financial system (IFS). For JAIIB applicants, understanding the different types of FDI and their impacts is essential for gaining insights into the mechanisms of global investment and their effects on India’s economic and financial landscape. Learning Sessions provides additional information about JAIIB IE & IFS FINANCIAL MARKET by giving examples of real life scenarios.

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