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FDI in INDIA
Prepared by-: Shaurya Jain
Class -: B.Com(Prof.)- 3rd
M M Modi College, Patiala
What is FDI ?
The Foreign Direct
Investment means “cross
border investment made by
a resident of one economy 
in an enterp...
Types of FDI
Why Country Seek FDI ?
Domestic capital is
inadequate for purpose of
economic growth;
Foreign capital is usually
essenti...
FDI in INDIA
India is the 3rd largest economy (PPP) of the
world and thus looks attractive to the world for
FDI.
In last...
Current
Scenario
of FDI
Policy
(a) Foreign Investment Promotion Board (popularly known as FIPB) :
The Board is responsible for expeditious clearance of F...
The procedure for receiving FDI in an
INDIA company?
An Indian company may receive Foreign Direct
Investment under the two...
Financial Year
FDI Inflow
(In US Billion $)
Sectors Attracting highest
FDI Inflow
Sectors where FDI is not allowed in INDIA
FDI is prohibited under the Government Route
as well as the Automatic Route in t...
Top 10 Countries Investing in INDIA
Sr. No Countries Amount of FDI
Inflows
% with total FDI
Inflows
1. Mauritius 55,203.30...
Improves forex position of
the country
Employment generation
and increase in production
Help in capital formation by
bring...
Disadvantages
i. Domestic companies fear that they may lose their
ownership to overseas company.
ii. Small enterprises fea...
At last
`
THANK YOU
FOR WATCHING
MY PRESENTATION
I HOPE YOU
GAIN SOMETHING
Foerign Direct Investment
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Foerign Direct Investment

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FDI

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Foerign Direct Investment

  1. 1. FDI in INDIA Prepared by-: Shaurya Jain Class -: B.Com(Prof.)- 3rd M M Modi College, Patiala
  2. 2. What is FDI ? The Foreign Direct Investment means “cross border investment made by a resident of one economy  in an enterprise of another economy, with the objective of establishing a lasting interest  in  the investee economy”.  Mostly the investment is into production  by either  buying a company in the
  3. 3. Types of FDI
  4. 4. Why Country Seek FDI ? Domestic capital is inadequate for purpose of economic growth; Foreign capital is usually essential during the period when the capital market is in the process of development. Foreign capital usually brings
  5. 5. FDI in INDIA India is the 3rd largest economy (PPP) of the world and thus looks attractive to the world for FDI. In last few years, certainly foreign investments have shown upward trends but the strict FDI policies have put hurdles in the growth in this sector. India is however set to become one of the major recipients of FDI in the Asia-Pacific region because of the economic reforms for increasing foreign investment.
  6. 6. Current Scenario of FDI Policy
  7. 7. (a) Foreign Investment Promotion Board (popularly known as FIPB) : The Board is responsible for expeditious clearance of FDI proposals and review of the implementation of cleared proposals. It also undertake investment promotion activities and issue and review general and sectoral policy guidelines; (b)Secretariat for Industrial Assistance (SIA) : It acts as a gateway to industrial investment in India and assists the entrepreneurs and investors in setting up projects. SIA also liaison with other government bodies to ensure necessary clearances; (c) Foreign Investment Implementation Authority (FIIA) : The authority works for quick implementation of FDI approvals and resolution of operational difficulties faced by foreign investors; (d) Investment Commission (e) Project Approval Board (f) Reserve Bank of India Authorities dealing with FDI
  8. 8. The procedure for receiving FDI in an INDIA company? An Indian company may receive Foreign Direct Investment under the two routes as given under: i. Automatic Route FDI is allowed under the automatic route without prior approval either of the Government or the Reserve Bank of India in all activities/sectors as specified in the consolidated FDI Policy, issued by the Government of India from time to time. ii. Government Route FDI in activities not covered under the automatic route requires prior approval of the Government which are considered by the Foreign Investment Promotion Board (FIPB), Department of Economic
  9. 9. Financial Year FDI Inflow (In US Billion $)
  10. 10. Sectors Attracting highest FDI Inflow
  11. 11. Sectors where FDI is not allowed in INDIA FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors: i) Atomic Energy ii) Lottery Business iii) Gambling and Betting iv) Business of Chit Fund v) Nidhi Company vi) Agricultural vii) Housing and Real Estate business .
  12. 12. Top 10 Countries Investing in INDIA Sr. No Countries Amount of FDI Inflows % with total FDI Inflows 1. Mauritius 55,203.30 41.56 2. Singapore 13,070.24 9.84 3. U.S.A 9,528.74 7.17 4. U.K 6,643.24 5.00 5. Netherlands 5,739.13 4.32 6. Japan 5,511.34 4.15 7. Cyprus 4,982.33 3.75 8. Germany 3,050.74 2.30 9. France 2,484.40 1.87 10. U.A.E 1,910.32 1.44
  13. 13. Improves forex position of the country Employment generation and increase in production Help in capital formation by bringing fresh capital Helps in transfer of new technologies, management skills, intellectual property Increases competition within the local market and this brings higher efficiencies Increases tax revenues Merits
  14. 14. Disadvantages i. Domestic companies fear that they may lose their ownership to overseas company. ii. Small enterprises fear that they may not be able to compete with world class large companies and may ultimately be edged out of business. iii. Large giants of the world try to monopolies and take over the highly profitable sectors. iv. Such foreign companies invest more in machinery and intellectual property than in wages of the local people. v.  Government has less control over the functioning of such companies as they usually work as wholly owned subsidiary of an overseas company.
  15. 15. At last
  16. 16. ` THANK YOU FOR WATCHING MY PRESENTATION I HOPE YOU GAIN SOMETHING

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