1. FDI
(foreign direct investment)
Team Members:
Sumit Kumar 12bit0130
Divyansh Sharma 12bce0088
M.Aravind

2. MEANING OF FDI
 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.

3.  Horizontal FDI
 Platform FDI
 Vertical FDI
TYPES OF FDI

4. REASONS FOR INDIA BEING ATTRACTIVE FOR 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

5. KEY STATIstiCS
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)

6. FACTS
 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.

7.  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

8. Disadvantages of FDI
 Crowing of local industry
 Conflict of laws
 Loss of control
 Effect on notional environment
 Effect on culture

9. FDI IN DIFFERENT SECTOR
 FDI in Retail
 FDI in insurance
 FDI in Aviation
 FDI in railway
 FDI in defence
 FDI in education
 FDI in broadcast

10. Sectors Prohibited for Foreign Direct Investment
 Atomic Energy
 Lottery Business including Government /private,lottery,
online lotteries, etc.
 Gambling and Betting including casinos etc.
 Business of chit fund
 Nidhi company

11.  Cabinet clears 100% FDI in Railways infrastructure, 49% in
defence.FDICa

12. FDI in Retail Sectors

14. Advantages of FDI in retail
 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

15. DISADVANTAGES 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

16. FDI IN INSURANCE

17. six key benefits of Increased Foreign
Direct Investment Limit in Insurance
Sector
Increased Insurance Penetration
Level Playing Field
Increased Capital Inflow
Job Creation

18.  Favorable to the Pension Sector
 Consumer Friendly

19. FDI inflows to India
Categories:
 Inflows by country-wise
 Inflows by sector-wise
 Inflows by state-wise

21. ENTRY ROUTES FOR FDI INFLOWS
 Automatic Route - RBI
 Government Approval-FIPB

22. RECENT FACTS ON 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 list
of countries that contributes the highest quantum of Foreign
Direct 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, the
Indian textile industry received FDI from Mauritius totalling to
$215.12 million

23. CONCLUSION
 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.