The impact of Foreign Direct Investment and its contribution towards various sector specifically Agriculture Industry & service Sector.

1. BUSINESS GOVERNMENT &
SOCEITY PRESENTATION
FDI CONTRIBUTION IN SECTORS
AGRICULTURE INDUSTRY SERVICE

2. PROBLEMSTATEMENT
Primary role of FDI in Agriculture, Industry & Service
sectors
How much contribution has been made from the past
decade.
What & How FDI Policies affect these sectors.

3. OBJECTIVE
To understand what is the role of FDI in agriculture industry
and service sectors;
Major changes been observed in the past decade;
Affect of such changes in the following sectors.

4. LITERATURE REVIEW
• India is attracting foreign investment at a good rapid rate of growth. The growth rate of FDI
over last year was found to be 40 % - Abhishek Vijay kumar Vyas
• The highest amount of FDI gone to financing sector, insurance sector, Real estate and
Business services which is 33.05 percent - Dr. Jasbir Singh
• Factors determining FDI inflows in various sectors are size of the sector, growth of the sector,
labor intensity, import intensity & import technology, profitability and the advertisement
intensity - Biswajit Dhar
• The recent changes in FDI policy regime of 2017 by GOI has helped to remove multiple
layers of bottlenecks faced by foreign investors. The investment processes have been
rationalized and expedited – Dr. Shikha Singh
• Attracting foreign direct investment has become an integral part of the economic
development strategies for India - Prof. Renuka Sagar

5. RESEARCHMETHODOLOGY-SECONDARYDATA-CASE
STUDYANALYSIS
FDI acts as an strategic component of investment required by the country.
Helps in achieving the economic reforms, maintains the pace of growth and
development of the economy.
FDI seen as an important economic catalyst of Indian economic growth
stimulates domestic investment, increasing human capital formation &
facilitating technology transfers.

6. ECONOMIC
SECTORS
PRIMARY
SECTOR
SECONDARY
SECTOR
TERTIARY
SECTOR

7. ROLE OF FDI IN PRIMARY SECTOR
Less
impact
Low FDI
Capital
Intensive
Kills
domestic
market

8. INDIA RESISTANCE FOR FDI

9. ROLE OF FDI IN SECONDARY SECTOR
Huge
Impact
High FDI
Greater
Potential
We need
more FDI…
……YAHOO

10. INDIA WELCOMES FDI
MarketSeeking
• Creating
Market
• Boom
production
• High
Employment
InternalGrowth
• Bring foreign
Technology
• Variety to
customers
• Increase
Standard of
living.
Attractions
• Low Capital
nation
• High
Demand
attracts
foreign birds
• Sector on
Growth

11. ROLE OF FDI IN TERTIARY SECTOR
HIGH
FDI ?

12. INDIA WELCOMES FDI
Necessary funding &
technology to improve capacity
Controlling Cost in host
country to increase demand
Driving Banks to Global
Financial market

13. FDI POLICY IN INDIA- AGRICULTURE
Main condition:
Floriculture, Horticulture, and Cultivation of Vegetables & Mushrooms
under controlled conditions;
Development and Production of seeds and planting material;
Animal Husbandry, Pisciculture, Aquaculture, Apiculture;
Services related to agro and allied sectors

14. FDI POLICY IN INDIA- AUTOMOBILES
Main condition:
Subject to the provisions of the FDI
policy, foreign investment in
‘manufacturing’ sector is under
automatic route. Further, a
manufacturer is permitted to sell its
products manufactured in India
through wholesale and/or retail,
including through e-commerce,
without Government approval.

15. FDI POLICY IN INDIA- AIR TRANSPORT SERVICE
Main condition:
 Scheduled Air Transport Service/ Domestic Scheduled Passenger
Airline
 Regional Air Transport Service
In case of NRI, 100% FDI allowed under automatic route

16. PROHIBITED SECTORS
lottery Business
Gambling and Betting including casinos
Chit Funds
Trading in Transferable Development Rights (TDR)
Real Estate Business or Construction of farm houses
Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or
of tobacco substitutes
Sectors not open to private sector investment- atomic energy, railway
operations (other than permitted activities mentioned under the
Consolidated FDI policy)

18. INVESTMENTFOR
SERVICESECTOR
FDI in India for services sector between April 2000 and December 2019
- US$ 80.67 billion

19. INVESTMENTSFOR
AGRICULTURESECTOR
According to the Department for Promotion of Industry and Internal
Trade (DPIIT) FDI equity inflow between April 2000 and December 2019
- US$ 9.78 billion

20. INVESTMENT FOR
MANUFACTURING
SECTOR
FDI in India’s manufacturing sector from April 2000-December 2019
- US$ 89.15 billion

21. CONCLUSION
Influences the level of economic growth in India
Provides a sound base for economic growth and development
Contributes to the GDP and foreign exchange reserves of the country
FDI policies help increase the standard of living of our country

22. REFERENCES
Aggarwal Aradhna- The Influence of Labor Markets on FDI
Fisher Peter S, Alan H Peters- Industrial Incentives
Foreign Direct Investment- Government of India Ministry of Commerce
and Industry Department of Industrial Policy and Promotion
International Journal of Advanced Education and Research- Impact of
foreign direct investment on Indian economy.

23. THANK YOU