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A Study of Make In India Fdi Policy &
Comparing Fdi Inflow Factors
With that of China
Vivek BhuratMba 1st Year, Pragati Mahavidyalaya PG College, Hyderabad.
Ph.No.: 9000400076, Email: [email protected]
Investment done by citizens and government of one country
(home country) in another country (host country) for which
the foreign investor has control over the company purchased.
FOREIGN DIRECT INVESTMENT
FDI inflow 2014
China has attracted 3.65 times more FDI than that
of India
Ranking& Confidence
POPULATION
“SECTOR-WISE BREAK-UP OF ECONOMIESCHINA & INDIA”
0%
50%
100%
Sectorwise
Break up of
China GDP
Sectorwise
Break up of
China
Population
Sectorwise
Break up of
India GDP
Sectorwise
Break up of
India
Population
Services
Industry
Agriculture
India’s 54% of population is engaged in Agriculture but only accounts for 17% of GDP
Agriculture 11.3 43 17.6 60
Industry 48.6 25 29.4 12
Services 40.1 32 52.9 28
Why china is preferred FDI destination than India
T he main reasons are:
Rapid economic growth since
reform period
Infrastructure availability
Abundance of labor and its low cost
Rapid expansion of china's domestic market
Role of overseas Chinese
Increased integration with the world
Labor laws
Political system and stability
Factors favouring FDI in India(Oppurtunities)
T he main reasons are:
Strong Economic GrowthHuge Labour ForceCheap LabourAccess to Capital Support
Factors Discouraging FDI in India(Challenges)
T he main reasons are:
Labour Policies Poor InfrastructureBeurocracy & CorruptionTransport costsLegal DelaysState Level ProblemsPolitical Structure
Factors Favouring India over China
According to Shri Narendra Modi –
Democracy
Huge Demographic Dividend
Demand
Make In India Campaign
Make in India is an initiative of the Government of
India, to encourage companies to manufacture
their products in India. It was launched by Prime
Minister, Narendra Modi on 25 September 2014
Conclusion
Make In India campaign has converted someof the challenges into oppurtunities
•Ease of Legal Process
•Skill development
•Infrastructure Development
•Tax Incentives
•Economies of Scale
Highlights of Make in India
Conclusion
•India a hot destination for FDI•India will have huge demand•Investor friendly policy
Conclusions
