FDI is investing in lomg term capital asset projects like infrastructure now when this happens it becomes difficult for the investors to liquidate their investment and fly away with the cash
but on the other hand if the foreigners invest in the liquid markets like the stock and bond markets they can easily cash out their positions and fly away thus this increases the volatility of our asset prices whuch the govt dosent like so it may ban FPI investment
so there are two terms FDI and FPI
FDI is investing in lomg term capital asset projects like infrastructure now when this happens it becomes difficult for the investors to liquidate their investment and fly away with the cash
but on the other hand if the foreigners invest in the liquid markets like the stock and bond markets they can easily cash out their positions and fly away thus this increases the volatility of our asset prices whuch the govt dosent like so it may ban FPI investment
Got it thank u