Q. What is the key difference between Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII)?
Answer: FDI brings capital, technology, and management while FII brings only capital
Notes: Foreign Direct Investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company. Foreign Institutional Investors (FIIs) include investment companies, mutual funds, insurance companies, pension funds which invest in a foreign country. But, unlike FDIs, FIIs do not provide technology or management skills.