Foreign Direct Investment (FDI) Policy refers to the regulations and guidelines set by a country to manage and encourage investments made by foreign entities in its economy. This policy outlines the sectors open to foreign investment, the limits on ownership, and the procedures for investment approval. It aims to attract foreign capital, technology, and expertise to boost economic growth. Countries often revise their FDI policies to create a more favorable investment climate. By doing so, they can enhance their competitiveness in the global market, create jobs, and stimulate innovation. Effective FDI policies can lead to sustainable development and improved infrastructure.