Foreign direct investment (fdi)


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Foreign direct investment (fdi)

  1. 1. FOREIGN DIRECT INVESTMENT (FDI)Presented By: Mr. Ganesh Pawar. Mr. Amit Jain. Mr. Mayur Kulkarni. Ms. Archana Patil. Ms. Rupali Magar.
  2. 2. WHAT IS FDI??51% stake of foreign equity and 49% stake ofIndiaFDI is a major source of external finance.Growing economic globalization.Provide a firm with new markets and marketingchannels, cheaper production facilities, accessto new technology, products, skills andfinancing.Increased competition.
  3. 3. FDI IN INDIAAdvantages:- 1. Economic growth 2. Better employment opportunities 3. Better education 4. Supply increases 5. Industrial developmentDisadvantages:- 1. Domestic market suffers 2. No guarantee of reasonable price 3. Lot of procedures and products may not be in tune with Indian preferences 4. Risk 5. Inflation
  4. 4. WHAT CASE SAYS??Announcement of Govt. for FDI.Households will have to bear the burden of highchargesThe government permitting the FDI in multi brandWallmart is aggressive for open doors of india in FDIQuasi-federal structureContributing growth in output and employement.FDI leads to displacement of traditional retailors.Private airlines in india from murky source.PSU will bring revenue bust the equity market.Tacklingthis problem requires strong decisiveleadership.
  5. 5. Positive and Negative Rumours
  6. 6. PROBLEM IDENTIFICATION (MAJOR)51% on the share of foreign equity causes the captureof Indian retail sector that leads to displacement oftraditional retailers.Opposition from local market being federal structure.Govt. lacks strong decisive leadership which isresponsible for mismanaged economic governance.
  7. 7. PROBLEM IDENTIFICATION (MINOR)Slowdown in manufacturing .Perception of FDI is not clear. No proper rumours.
  8. 8. MULTIPLE ALTERNATIVE SOLUTIONSLess margin but with quality for entrepreneurs.Apply ISO system.Govt. should think on the domestic reforms andreduce supply chain.Govt. must have strong, decisive leadership whichare useful for the decisions regarding economicgrowth.Govt. should provide right price to the agriculturalproducts.What is wrong in consumer getting a competitiveprice? Producers, too, will get more remunerativeprices as there will be more buyer, and let themiddleman face competition.If FDI is permitted in retail, the middleman will beeliminated.
  9. 9. BEST SOLUTION WITH PLAN OF ACTION Government should design development and implement separate agency. Ifwe have open up many sectors to FDI, in all these sectors quality control must be improved. And domestic industries has survived.
  10. 10. CONCLUSION In democracy, it is said that participation of public is consider. We have parliamentary system of government where opposition also participated in Lok- Sabha, Rajya-sabha. But sad to say our ruling govt. not considered opposition views but taken decision one-sided.Before Propose Reduce Oppose.