Foreign direct investment (FDI): Ordinance enabling FDI in coal mining

Foreign direct investment (FDI): Ordinance enabling FDI in coal mining

Part of: GS Prelims and GS-III- Economy

In News

• The decision was taken to boost domestic production of Coal to one billion tonnes by 2023-24 as it leads to cheaper inputs and increase in competitiveness

About Ordinance: 

• Ordinances are laws that are promulgated by the President of India on the recommendation of the Union Cabinet, which will have the same effect as an Act of Parliament. 
• They can only be issued when Parliament is not in session. 
• They enable the Indian government to take immediate legislative action

Foreign direct investment (FDI)

• Investment from a party in one country into a business or corporation in another country 
• Foreign direct investment can be made by expanding one’s business into a foreign country or by becoming the owner of a company in another country.