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FDI in India - An Analysis
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FDI in India - An Analysis

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This Presentation brings out the Data related to FDI in India and it also compares the FDI in iNdia and China

This Presentation brings out the Data related to FDI in India and it also compares the FDI in iNdia and China

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  • 1. FDI IN INDIA – AN ANALYSIS BY K.Periasamy, Chennai
  • 2. 40 MAJOR ECONOMIES SHARE OF WORLD GDP Western Europe India 35 30 United States15 20 25 Percentage China 10 Japan 5 India 0 0 1000 1500 1600 1 700 1820 1870 1913 1950 1973 1998 2005 Year
  • 3. DEVELOPED COUNTRIES HAVE RECEIVED MAXIMUM FDI NOTE : 1) Only in the last 10 years, Developing countries have received higher FDI. 2) China has been consistently receiving higher FDI for the past 20 years.
  • 4. Economic Growth Linkages and spillover to Tradedomestic firms Technology diffusion and Employment knowledge and skill levels transfer
  • 5. • Log of GDP = 4.12 + 0.466 Log of FDI 6.2 6.1 6Log of GDP 5.9 5.8 5.7 5.6 5.5 5.4 5.3 5.2 2 2.5 3 3.5 4 Log of FDI
  • 6. INDIA – YEARLY NET FDI INFLOWS 6000 5000 4000US $ million 3000 2000 1000 0
  • 7. INDIA – MAJOR INVESTING COUNTRIESNOTE : 1) Mauritius is only the Route
  • 8. INDIA – FDI INVESTMENT BY USANOTE : 1) USA INVESTMENT IS NOT GREAT. BUT WE ALWAYS TALK ABOUT USA MNCs !
  • 9. INDIA – SECTORWISE FDI Services Sector 3% 6% 4% 4% Computer Software & 6% hardware Telecommunications 10% Housing & real Estate 31% Construction Activities 11% Power Automobile Industry 12% Metallurgical Industries 13% Petroleum & Natural GasNOTE : 1) REASONABLY GOOD DISTRIBUTION. 2) MORE FDI SAHLL BE ATTRACTED IN MANUFACTURING SECTOR
  • 10. INDIA – CUMULATIVE INFLOW OF FDI UPTO 08-09NOTE : 1) THE TOTAL AS ON 2009 WAS JUST 24.6 Bn USD
  • 11. INDIA – CUMULATIVE INFLOW OF FDI 07-08 to 10-11
  • 12. CHINA – CUMULATIVE INFLOW OF FDINOTE : 1) THE TOTAL AS ON 2009 WAS CLOSE TO 100 Bn USD COMPARED TO JUST 24.6 Bn USD IN INDIA
  • 13. CHINA – REGIONWISE FLOW OF FDI
  • 14. INDIA – REGIONWISE FLOW OF FDINOTE : 1) PROGRESSIVE STATES RECEIVE MORE FDI AND GROW MORE ! 2) THIS IS THE REALITY.
  • 15. INDIA – GDP GROWTHNOTE : 1) DRAMATIC INCREASE AFTER 1992. IT COINCIDES WITH LIBERALISATION AND FLOW OF FDI.
  • 16. INDIA – CHINA COMPARISON
  • 17. INDIA – CHINA COMPARISON
  • 18. FDI TREND – OUTLOWS WORLDWIDE
  • 19. FDI TREND – INFLOWS WORLDWIDENOTE : 1) STILL THE DEVELPED COUNTRIES RECEIVE THE MAXIMUM FDI 2) THERE IS NET OUTFLOW FROM G20 3) WE NEED TO REALISE THE IMPORTANCE OF FDI
  • 20. THIS IS THE REALITY !NOTE : 1) EVERY COUNTRY HAS GROWN AFTER OPENING UP OF THE ECONOMY 2) FDI FLOWS AFTER OPENING UP ONLY 3) IF WE HAD OPENED UP OUR ECONOMY IN THE SAME MANNER AS CHINA DID IN THE 90s, BY NOW, WE WOULD HAVE BEEN BETTER OFF THAN CHINA
  • 21. THANK YOU