Difference between FII and FDI

In crude terms:

• FII= when foreign-players invest in shares and stockmarket. CLICK HERE FOR FII

• FDI= when foreign companies invest in India for manufacturing, production, sales etc. by themselves (100%) or by partnering with some Indian firms.

1. FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily.
2. Foreign Direct Investment targets a specific enterprise. The FII increasing capital availability in general.
3. The Foreign Direct Investment is considered to be more stable than Foreign Institutional Investor

4. While the FDI flows into the primary market, the FII flows into secondary market. 

5. While FIIs are short-term investments, the FDI’s are long term.

FOR ARTICLE ARCHIVES CLICK HERE