Lasting interest differentiates FDI from foreign portfolio investments, where investors passively hold securities from a foreign … Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest. Foreign Investment refers to domestic companies investing in foreign companies with the objective of gaining stake and seeking active participation not only day-to-day operations of the business and but also for key strategic expansion. Foreign direct investment, or FDI for short, has become a cornerstone for both governments and corporations. Thus, this has ensured that the foreign capital keeps on flowing in India. The Indian government has ensured that the policies and business environment in the country are robust and in favor of the foreign companies. By acquiring a controlling interest in foreign assets, corporations can quickly acquire new products and technologies, as well as sell their existing products to new markets. Most concretely, it may take the form of buying or constructing a factory in a foreign country or adding improvements to such a facility, in the form of property, plants, or equipment. What is Foreign Investment? Foreign direct investment (FDI) pertains to international investment in which the investor obtains a lasting interest in an enterprise in another country. Foreign investment, as the name implies, is a direct form of investment into a business in a country by an individual or group of individuals from another country. Foreign Investment Foreign Investment.