FDI(foreign direct investment)

Team Members:

Sumit Kumar 12bit0130

Divyansh Sharma 12bce0088

M.Aravind

FDI is direct investment into production in a country by

a company located in another country, either by buying a

company in the target country or by expanding

operations of an existing business in that country.

MEANING OF FDI

Horizontal FDI

Platform FDI

Vertical FDI

TYPES OF FDI

Market Share

Expectations of further liberalization of capital

movement internationally

Rationalization of Economic Policies

Improvement in Domestic Financial Institutions and

Banks

Good manufacturing and outsourcing Hub

REASONS FOR INDIA BEING ATTRACTIVE FOR FDI

o India received FDI worth US $1.47 billion in july 2012 with

cumulative inflow for April 2012-13 Stood at $5.9billion.

o The sector which attracted huge FDI inflows during the April 2012-

13 are service $1.65 million pharmaticals $428 million, construction

$421 million, metallurgical industries (US$ 334 million), power

(US$ 237 million) and automobile (US$ 234 million)

KEY STATIstiCS

At least 10% shares of company need to quality as FDI.

Mauritian has been the largest direct investor.

New Delhi And Mumbai are two major cities where FDI

inflows is heavily concentrated.

Retailing is the single largest component of the services

sector in terms of contribution of GDP.

FACTS

Inflow of equipment and technology

Competitive advantages and innovation

Finance resource for expansive

Employment generation

Contribution to export growth

Improved consumer welfare through reduced cost, wider choice & improved quality.

Provide access to global markets for Indian producer.

Advantages of FDI

Crowing of local industry

Conflict of laws

Loss of control

Effect on notional environment

Effect on culture

Disadvantages of FDI

FDI in Retail

FDI in insurance

FDI in Aviation

FDI in railway

FDI in defence

FDI in education

FDI in broadcast

FDI IN DIFFERENT SECTOR

Atomic Energy

Lottery Business including Government /private,lottery, online lotteries, etc.

Gambling and Betting including casinos etc. Business of chit fund

Nidhi company

Sectors Prohibited for Foreign Direct Investment

Cabinet clears 100% FDI in Railways infrastructure, 49% in

defence.FDICa

FDI in Retail Sectors

Growth in Economy

Job Opportunities

Benefits to Farmers

Benefits to consumers

Availability of new technology

Cheaper Production facilities

FDI opens up a new avenue for Franchising

Advantages of FDI in retail

Farmers will not get better prices

Big Retail is one big cause of food inflation

Big Retail kills small jobs

Creating monopoly

Increase in Real estate prices

DISADVANTAGES OF FDI IN RETAIL

FDI IN INSURANCE

six key benefits of Increased Foreign

Direct Investment Limit in Insurance

Sector

Increased Insurance Penetration

Level Playing Field

Increased Capital Inflow

Job Creation

Favorable to the Pension Sector

Consumer Friendly

Categories:

Inflows by country-wise

Inflows by sector-wise

Inflows by state-wise

FDI inflows to India

Automatic Route - RBI

Government Approval-FIPB

ENTRY ROUTES FOR FDI INFLOWS

In 2013-14, FDI inflows in India were $24.29 billion against $22.42 billion in 2012-13.

Reserve Bank of India (RBI) reveals that Mauritius tops the listof countries that contributes the highest quantum of ForeignDirect Investment (FDI) equity inflows into the state.

Mauritius pours highest FDI into Indian textile sector.

In the period between fiscal years 2011-12 and 2013-14, theIndian textile industry received FDI from Mauritius totalling to$215.12 million

RECENT FACTS ON INFLOWS

In evey sector government has increase the FDI which

results in the economy growth and also increase in GDP.

Weightage of Advantages over disadvantages is very

high.

In my team members point of view FDI is good for

india.

CONCLUSION