Foreign Direct Investment is a long-term stake (10% or more) in an Indian company. Foreign Portfolio Investment is a smaller holding of shares or bonds that can be sold quickly.
Related terms in Government & economy
Balance of Payments (BoP)
A record of all money flows between India and the rest of the world in a period. It has a current account and a capital account.
Consumer Price Index (CPI)
Measures changes in retail prices paid by households. Released monthly by the National Statistics Office (MoSPI).
Core inflation
Inflation excluding volatile items such as food and fuel. Headline inflation includes everything.
Current Account Deficit (CAD)
When a country's imports of goods, services and transfers are more than its exports. It is part of the balance of payments.
Deflation and disinflation
Deflation is a fall in the general price level. Disinflation is a slowdown in the rate of inflation while prices still rise.
Direct and indirect tax
A direct tax is paid by the person it is levied on, such as income tax. An indirect tax is passed on to the buyer, such as GST.
Direct Benefit Transfer (DBT)
Sending subsidies and benefits straight to beneficiaries' bank accounts, usually linked with Aadhaar. It started on 1 Jan 2013.
Disinvestment
The government selling part or all of its stake in a public sector company.
Finance Commission
A body set up every five years under Article 280 to recommend how tax revenue is shared between the Centre and the states.
Fiscal deficit
The government's total spending minus its total receipts excluding borrowings. It shows how much the government must borrow.