Foreign direct investment (FDI) refers to foreign ownership of domestic productive assets like factories and land. FDI provides long-term ownership that cannot be easily liquidated. It is considered an important driver of economic growth. The document discusses India's FDI policies, sectors that attract FDI, and arguments for and against allowing FDI in multi-brand retail. India's FDI policy currently allows up to 100% FDI in cash-and-carry wholesale trading and export trading, and up to 51% FDI in single-brand retail with government approval.