The Full Form of FPI is Foreign portfolio investment.

Foreign investment, quite simply, is investing in a country other than your home one. It involves capital flowing from one country to another and foreigners having an ownership interest or a say in the business. Foreign investment is generally seen as a catalyst for economic growth and can be undertaken by institutions, corporations, and individuals.

Investors interested in foreign investment generally take one of two paths: foreign portfolio investment or foreign direct investment. Foreign portfolio investment (FPI) refers to the purchase of securities and other financial assets by investors from another country. Examples of foreign portfolio investments include stocks, bonds, mutual funds, exchange traded funds, American depositary receipts (ADRs), and global depositary receipts (GDRs).

Foreign direct investment (FDI) refers to investments made by an individual or firm in one country in a business located in another country. Investors can make foreign direct investments in a number of ways. Some common ones include establishing a subsidiary in another country, acquiring or merging with an existing foreign company, or starting a joint venture partnership with a foreign company.