If a business entity in one country invests money into some other business entity in another country, it is known as FDI in the recipient company. FDI is beneficial for the source as well as for the destination. India is an attractive destination for foreign companies because of availability of resources, large and comparatively cheaper workforce, and a big market. But there is a cap on the percentage of FDI in several sectors, which can leading to slow development in those sectors. For example, there is a cap of 74% FDI in the private banking sector, 26% in insurance, 26% ...

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