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

1. Foreign Direct Investment (FDI) generally refers to an investment made by a company or individual from one country into business interests located in another country, with the aim of establishing a 'lasting interest' and exercising significant influence over the foreign enterprise. 2. Statement 1 (Subsidiaries of foreign companies in India) is correct. Establishing a subsidiary implies significant control and long-term interest by the foreign parent company, which falls under the definition of FDI. 3. Statement 2 (Majority foreign equity holding in Indian companies) is correct. Acquiring a majority equity stake (typically defined as 10% or more, but especially majority holding) signifies significant influence and control, qualifying as FDI. 4. Statement 3 (Companies exclusively financed by foreign companies) is correct. If a foreign company exclusively finances an Indian company, it usually implies establishing a subsidiary or having a significant controlling interest, thus constituting FDI. 5. Statement 4 (Portfolio investment) is incorrect. Portfolio investment involves the purchase of securities (like stocks and bonds) in a foreign country without the intent to exercise control over the company. It is generally considered short-term and speculative, distinct from the long-term, control-oriented nature of FDI. Portfolio investment by foreign entities is categorized separately as Foreign Portfolio Investment (FPI) or Foreign Institutional Investment (FII). 6. Therefore, 1, 2, and 3 represent forms or results of FDI.