Foreign direct investment (FDI) refers to an investment made to acquire a lasting interest in an enterprise operating outside the investor's home economy. FDI has been a major source of external financing for countries with limited capital, allowing them to receive funds from wealthier nations. Both FDI inflows to India and outbound FDI from India peaked in the late 2000s, though FDI recovered in subsequent years before declining again. India has positioned itself as one of the fastest growing economies and top destinations for inbound investment. While foreign collaborations can be beneficial in some industries, India must restrict activities of multinational corporations that increase dependence or drain resources, and ultimately work to reduce reliance on foreign investment.