Which of the following would include Foreign Direct Investment in India?<br/>1. Subsidiaries of foreign companies in India.<br/>2. Majority foreign equity holding in Indian companies.<br/>3. Companies exclusively financed by foreign companies.<br/>4. Portfolio investment.<br/><br/>Select the correct answer using the codes given below:

1. Subsidiaries of foreign companies in India — A foreign company setting up/owning a subsidiary in India is a classic case of FDI, as it involves lasting interest and control. Correct.

2. Majority foreign equity holding in Indian companies — If foreign investors hold a controlling/majority stake, it reflects direct investment, not mere trading in securities. Correct.

3. Companies exclusively financed by foreign companies — Where the investment comes directly from foreign companies to establish/finance an enterprise in India, it falls under FDI. Correct.

4. Portfolio investment — Portfolio investment is FPI/FII, involving passive investment in securities without management control; it is not FDI. Incorrect.

Hence, 1, 2 and 3 only are included in Foreign Direct Investment.