Advantages of FDI
- Brings in new capital for investment.
- Can introduce better management skills and technology.
- Promotes economic growth and job creation.
- Helps in integrating with global value chains.
- Can enhance domestic competitiveness.
- Contributes to overall economic development.
Disadvantages of FDI
- The text does not explicitly list disadvantages of FDI for developing countries.
- However, it mentions that issuing debt in foreign currencies could expose the country to exchange rate risk.
- It also implies that FPIs can lead to volatility in the rupee.