Foriegn Direct Investment in India

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Foriegn Direct Investment in India

  1. 1. FOREIGN DIRECT INVESTMENT (FDI) IN INDIA By :- Navneet Chaudhary Nikesh Biswal Sagar Singh Muttu Ayyanar Jairaj Vaidya
  2. 2. INTRODUCTION  Foreign Direct Investment, or FDI, is acquisition of physical assets or capital in India. It leads to change in management, transfer of technology, increase in production etc.  It usually involves participation in management, joint venture, transfer of technology and expertise.  FDI can be classified: Inward FDI and Outward FDI
  3. 3. FDI BENEFITS Economic Growth Trade Employment and skill levels Technology diffusion and knowledge transfer Linkages and spillover to domestic firms
  4. 4. 4 FDI APPROVAL PROCEDURE Government Route for few sectors Automatic Route in most Sector RESERVE BANK OF INDIA Foreign Investment Promotion Board No permission required, only to notify RBI within 30 days of issue of shares to foreign Approval is granted generally in 30 days
  5. 5. FDI INFLOWS IN INDIA 10,733 18,654 12,87110,06414,653 24,584 56,390 98,642 142,829 123,120 97,320 165,146 121,907 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 FDI Inflow in India (In Rs. Crore)
  6. 6. TOP INVESTING COUNTRIES 45241 9387 7845 5596 4282 3565 3527 2654 1476 1466 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000
  7. 7. FDI INFLOW- SECTOR WISE 0 26306 7248 1654 2656 6011 1596 8384 2923 7878 17777 0 5000 10000 15000 20000 25000 30000
  8. 8. CONCLUSION  The increased flow of FDI in a country has given a major boost to the country's economy  FDI has provided better access to technologies for the local economy  FDI has lead to indirect productivity gains through spillovers  Multinational firms have increased the degree of competition in host-country markets which will force existing inefficient firms to invest more in physical or human capital
  9. 9. • Service sector has been the most sought after sector in India for Foreign Direct Investments • India, with its skilled labor and manpower has the potential to overtake China as the most preferred destination for Foreign Investments • Hence measures must be taken in order to ensure that the flow of FDI in our country continues to grow
  10. 10. THANK YOU

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