What is the full form of 'FDI', a key component of the post-1991 economic reforms?

Correct option is A

The correct answer is (A) Foreign Direct Investment

Explanation:
• FDI is an investment made by a firm or individual in one country into business interests located in another country.
• It involves establishing a lasting interest and significant influence over the foreign enterprise.

Information Booster:
• In 1991, India launched the LPG (Liberalization, Privatization, Globalization) reforms, which drastically opened up the economy to FDI.
• Mauritius, Singapore, and the USA have historically been major sources of FDI for India.

Additional Knowledge:
• FPI (Foreign Portfolio Investment): Involves buying financial assets like stocks or bonds in a foreign country, without direct control over the company.