1. What is FDI 2. Year wise flow 3. Data 4. Need for FDI 5. Impact of FDI in India

2.  Foreign direct investment (FDI) is an investment
made by a firm or individual in one country into
business interests located in another country.
 FDI takes place when an investor establishes
foreign business operations or acquires foreign
business assets, including
establishing ownership or controlling interest in
a foreign company.

3. 2378.684027.692704.342187.853218.69
5539.72
12491.77
24575.43
31395.97
25834.41
21383.05
35120.8
22423.58
24299.33
30930.33
40000.98
43478.27
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
In US$ million

5.  STABLE POLICIES
 ECONOMIC FACTORS
 CHEAP AND SKILLED LABOR
 BASIC INFRASTRUCTURE
 UNEXPLORED MARKETS
 AVAILABILITY OF NATURAL RESOURCE

6.  FDI has both positive and negative impacts
on Indian economy.
POSITIVE IMPACT

7.  NEGATIVE IMPACT:
 Impact on Retail
 Impact on Exports
 Impact on Inflation

8.  Inflow of equipment and technology
 Competitive advantages and Innovation
 Finance Resource for Expansion
 Employment Generation
 Contribution to export growth
 Provides Indian producers an access to
Global Markets.

9.  India’s volume of FDI has majorly increased
due to mergers and acquisitions rather then
large Greenfields projects. M&As not
necessarily imply infusion of new capital into a
country if it is through reinvested earnings and
intra company loans. Business friendly
environment must be created on priority to
attract large Greenfields projects.
 Indian economy is largely agriculture based.
There is plenty of scope in food processing,
agriculture services and agricultural machinery.
FDI in this sector should be encouraged.

10.  Opening of export oriented sectors to attract
more FDI inflow.
 Political Stability
 Adopt innovative and globally competitive
policies.

11.  India has been one of the developing countries and
has managed to show positive GDP growth even
during recession.
 If this situation continuous to improve, India is likely
to be among the most promising home-investor
countries.
 India has all variables such as fine infrastructure,
potential market, abundant labour, availability of
natural resource and at last economic and trade
policies which are favouring FDI
 India is now rated 2nd most favoured destination for
FDI after China but is expected that in future it’ll
beat china because of his increasing young
population

12.  https://www.investindia.gov.in/foreign-direct-
investment.
 https://community.data.gov.in/
 https://rbi.org.in/scripts/AnnualReportPublica
tions.aspx?Id=1221