2. WHAT IS FDI?
FDI can be defined as a cross border
investment, where foreign assets are invested
into the organizations of the domestic market.
3. Increase investment level and thereby
increase in income & employment.
Increase tax revenue of government.
Facilitates transfer of technology.
Increase exports and reduce import requirements.
Increase competition and break domestic monopolies.
Improves quality and reduces cost of inputs.
Why countries seek FDI
4. 1995 – World Trade Organization’s general agreement on
trade in services, which include both wholesale and retailing
services, came into effect
1997 – FDI in cash and carry (wholesale) with 100% rights
allowed under the government approval route
2006 – FDI in cash and carry (wholesale) brought under
the automatic route
Up-to 51% investment in a single- brand retail outlet
permitted
2011 – 100% FDI in single –brand retail permitted
2012, Sep – 51% FDI in multi- brand retail permitted
Government Policies
Background:
5. 1)AUTOMATIC ROUTE: FDI is
allowed without prior approval of RBI
or government as specified under FDI
policy
2)GOVERNMENT ROUTE: FDI is
allowed with prior approval of
Foreign Investment Promotion
Board(FIPB),Department of
Economic Affairs , Ministry of
Finance.
ENTRY ROUTES FOR
FDI:-
6. Retail Trading
Atomic Energy
Lottery Business
Gambling and Betting
Housing and Real Estate business
Agriculture
Plantations (Other than Tea plantations)
SECTORS WHERE FDI IS
PROHIBITED:-
7. Policy in Defense sector liberalized and FDI cap
raised from 26% to 49%.
100% FDI under automatic route permitted in
construction, operation and maintenance in
specified Rail Infrastructure projects.
Easing of norms underway for FDI in the
Construction Development sector.
Opening up Foreign Direct
Investment in key sectors:-
.”
8. SINGLe brand RETAIL
Single brand retail is one in which a single item is
sold across all outlets. Such as GUCCI, NIKE,
ADIDAS.
9. Multi-brand retail or "Supermarket" is where many
items are sold under a single roof. For e.g. Tesco,
Carrefour etc.
Multi Brand Retail
14. FACTS
At least 10% shares of the company
needs 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.
15. The Indian Cabinet Committee on Economics Affairs (CCEA)
is strongly expected to raise the FDI ceiling in the Insurance
and Pension sectors.
FDI threshold to 49% in the Insurance sector from the existing
limit of 26%, has been submitted to the cabinet for proper
approval in the quickest possible period.
Increment in the FDI ceiling in the insurance sector of India,
will certainly be highly and greatly appreciated by domestic
and foreign insurance companies, for the purpose of
expanding and enriching their insurance and re-insurance
business.
FDI IN INSURANCE SECTOR
16. FDI IN BROADCASTING
SECTOR
Liberalize the broadcasting sector of India to
FDI, the Indian in Cabinet Committee on
Economic Affairs(CCEA) raised the FDI cap
from 49% to 74% many field of broadcasting
sectors. CCEA opted to retain the existing cap of
26% in the fields of TV news channels and FM
radio.
17. Farmers get greater share of consumer’s pay,
Retailers directly source goods from farmers,
Integrating Indian farmers in
Global Supply-Chain.
HOW FARMERS GET Benefited?
18. • Wastage and Storage problems will be resolved,
• Efficient logistics, production, and distribution
channels,
• Digital records, Infrastructure,
Distribution and warehousing technologies.
Advancement of Technology
19. • Creating at least 10 million jobs in
Agro-processing,
Manufacturing,
Logistics.
• Improvement in the quality of employment,
• Estimating 50% of jobs in rural areas,
• 30% of inputs from Medium-size & Small enterprises.
Opportunity for Employment
20. Safety & quality,
High shopping experience,
Upgradation of lifestyle & fashion of
people,
Awareness of International Brands.
SATISFIED CONSUMER
21. Crowing of local industry.
Conflicts of law.
Loss of control.
Effect on notional environment.
Effect on culture.
Negative Impacts
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