Foreign Direct Investment (FDI) typically involves establishing a lasting interest and control in an enterprise operating in an economy different from that of the investor, often leading to the transfer of management expertise and technology. Foreign Institutional Investors (FIIs), on the other hand, invest in financial assets like stocks and bonds, primarily to gain from short-term price fluctuations or dividend income, thus increasing the general availability of capital in the market. FDI generally targets specific sectors where control or significant influence is sought, whereas FII investments are more fluid and sector-agnostic, focusing on financial returns.