The presentation explains FDI, its types ,its strategies, advantages and disadvantages of FDI, its sectoral guidelines, and why FDI is important.

2. FOREIGN DIRECT INVESTMENT
(FDI) IS AN INVESTMENT IN A
BUSINESS BY AN INVESTOR FROM
ANOTHER COUNTRY FORWHICHTHE
FOREIGN INVESTOR HAS CONTROL
OVERTHE COMPANY PURCHASED.
INTRODUCTION

3. IT IS A KEY COMPONENT IN GLOBAL ECONOMIC
INTEGRATION.
IT IS FORM OF CROSS BORDER INVESTMENT WITH
THE OBJECTIVE OF ESTABLISING A LASTING
INTEREST THAT ESTABLISHED ENTERPRISE IN ONE
COUNTRY MIGHT HAVE IN AN ENTERPRISE
OPERATING IN ANOTHER COUNTRY.
ACCORDING TO ORGANIZATION FOR
ECONOMIC CO-OPERATION AND DEVELOPMENT
(OECD),AN INVESTMENT OF 10% OR ABOVE FROM
OVERSEAS IS CONSIDERED AS FDI. IN INDIA,
FOREIGN DIRECT INVESTMENT POLICY IS
REGULATED UNDER THE FOREIGN EXCHANGE
MANAGEMENT ACT, 2000 GOVERNED BY THE
RESERVE BANK OF INDIA.

5. STRATEGIES OF FDI
Greenfield Investment
A green-field (also "greenfield") investment is a
type of foreign direct investment (FDI) in which a
parent company creates a subsidiary in a different
country, building its operations from the ground
up. In addition to the construction of new
production facilities,these projects can also
include the building of new distribution hubs,
offices, and living quarters.
Brownfield Investment
A brownfield (also known as "brown-field")
investment is when a company or government
entity purchases or leases existing production
facilities to launch a new production activity.This is
one strategy used in foreign-direct investment.

6. WHY FDI?
Gain a foothold in a new geographic
market.
Increase a firm’s global competitiveness
and positioning.
Fill gaps in a company’s product lines in
a global industry.
Reduce costs in areas such as R&D,
production and distribution.

7. SECTORAL
GUIDELINES

8. ATTRIBUTES
ADVANTAGES
1. Increase in domestic employment
2. Increased Capital Investment.
3. World class scientific, technical and
managerial manpower.
4. Targeted regional and sectoral
development.
DISADVANTAGES
1. Industrial Sector dominance in the
domestic market.
2. Technological Dependence on foreign
technology sources.
3. Disturbance of Domestic Economic
Plans in favor of FDI – Direct activities.

10. By-DHARA SHARMA
LL.M (1st Sem)
Business Law.