Foreign Direct Investment (FDI) and Trade:

1. FDI is an important factor in global economy.

2. Foreign trade and FDI are closely related. In developing countries like India 

3. FDI in the natural resource sector, including plantations, increases trade volume. 

4. Foreign production by FDI is useful to substitute foreign trade. 

5. FDI is also influenced by the income generated from the trade and regional integration schemes.

6. FDI is helpful to accelerate the economic growth by facilitating essential imports needed for carrying out development programmes like capital goods, technical know-how, raw materials and other inputs and even scarce consumer goods.

7. FDI may be required to fill the trade gap. 

8. FDI is encouraged by the factors such as foreign exchange shortage, desire to create employment and acceleration of the pace of economic development.

9. Many developing countries strongly prefer foreign investment to imports. 

10. However, the real impact of FDI on different sections of an economy.