Fdi policies in india


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  • http://www.investopedia.com/terms/f/fdi.asp
  • http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2513
  • highest FDI of USD 2.15 billion was received in January followed by USD 1.79 billion in February and USD 1.52 billion in March
  • Economic growth slipped to a decade low of 5 per cent in 2012-13 due to poor performance of farm, manufacturing and mining sectors.Economic growth slipped to a decade low of 5 per cent in 2012-13 due to poor performance of farm, manufacturing and mining sectors.
  • Fdi policies in india

    1. 1. Presented by : Rubina Isidore Vibhavari Musale Surabhi Saxena Sheetal Chavan FDI POLICIES IN INDIA
    2. 2. An investment made by a company or entity based in one country, into a company or entity based in another country. The investing company may make its overseas investment in a number of ways - either by setting up a subsidiary or associate company in the foreign country, by acquiring shares of an overseas company, or through a merger or joint venture. An example of foreign direct investment would be an American company taking a majority stake in a company in China. Another example would be a Canadian company setting up a joint venture to develop a mineral deposit in Chile. WHAT IS FDI
    3. 3.  Through financial collaborations..  Through joint ventures and technical collaborations.  Through capital markets  Through private placements or preferential allotments. FOREIGN DIRECT INVESTMENT (FDI) FDI IS PERMITTED AS UNDER THE FOLLOWING FORMS OF INVESTMENTS –
    4. 4.  Arms and Ammunition.  Atomic Energy.  Railway Transport. FDI IS NOT PERMITTED IN THE FOLLOWING INDUSTRIAL SECTORS:
    5. 5. A. Agriculture Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aquaculture, Cultivation of vegetables & mushrooms and services related to agro and allied sectors. B. Industry Mining covering exploration and mining of diamonds & precious stones; gold, silver and minerals. C. Manufacturing Alcohol- Distillation & Brewing ENTRY ROUTE – 100% AUTOMATIC
    6. 6. 1. Tea Sector 2. Broadcasting / Cable 3. Publishing of scientific magazines / speciality journals/periodicals ENTRY ROUTE - FIPB
    7. 7. FDI IN CURRENT SCENARIO Declined by six per cent to USD 5.47 billion during January-March quarter in 2013, 5.84 billion in January-March 2012 Liberalised FDI policy in sectors like multi-brand retail, civil aviation, broadcasting and power exchanges Maximum FDI from Mauritius, followed by the UK, Singapore, Japan and United States
    8. 8. FDI IN DIFFERENT SECTORS Sectors which received large FDI inflows during the period include services, hotel and tourism, metallurgical, construction, automobiles and Pharmaceuticals Decline in foreign investments could put pressure on the country’s balance of payments and may also impact the value of the rupee.
    9. 9. FDI IN MULTI-BRAND RETAIL FDI limit in multi-brand retail sector is at 51% Only 11 states have allowed FDI in the sector Foreign retailers that want to set up retail stores in India have to mandatorily invest at least 50% of the total FDI brought in has to be invested in 'backend infrastructure' within three years of the first tranche of FDI wherein back-end infrastructure includes capital expenditure on agriculture market produce infrastructure and others At least $100 million FDI has to be brought in by the foreign investors.
    10. 10. FDI IN INSURANCE SECTOR Bill to increase FDI limit in insurance from 26% to 49% has been pending in the Rajya Sabha since 2008 But,it remained upto 26% only
    11. 11. TOP INVESTING COUNTRIES 53% 11% 9% 7% 5% 4% 4% 3% 2% 2% Mauritius Singapore USA UK Netherlands Japan Cyprus Germany UAE France
    12. 12. SECTOR WISE DISTRIBUTION 31% 13% 12% 11% 10% 6% 6% 4% 4% 3% Services Sector Computer Software & hardware Telecommunications Housing & real Estate Construction Activities Power Automobile Industry Metallurgical Industries Petroleum & Natural Gas Chemicals
    13. 13. Quality and Hygiene Inflow of Dollars Creation of new jobs Benefit to farmers Increased technical know-how Economic growth IMPACT OF FDI IN INDIA
    14. 14.  www.investopedia.com  http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2513  http://www.investinginindia.in/fdi.htm REFERENCES