The document discusses trends in foreign capital and foreign investment in India. It provides background on foreign capital and defines different types of foreign investments like foreign direct investment and foreign portfolio investment. It outlines the government's foreign investment policies since 1991 which liberalized and encouraged more foreign investment. The key benefits of foreign capital for India's economic development discussed are increasing availability of capital, exports, employment, capital goods and infrastructure development. The top sectors attracting foreign investment in India from 2000-2014 are services, construction, telecom, software and pharmaceuticals.
Foreign investment involves capital flows from one country to another, granting foreign investors ownership stakes in domestic companies and assets. Foreign investment plays an extraordinary role in global business by providing access to new markets, cheaper production facilities, and new technologies. The main channels of foreign investment are commercial loans, official flows, foreign direct investment (FDI), and foreign portfolio investment (FPI). India's foreign investment policies aim to facilitate foreign investment while regulating sectors like defense, mining, media, and retail trading. While foreign investment provides benefits like jobs and revenue, it also poses challenges like increasing foreign dependence and negatively impacting domestic industries in some cases.
This document discusses foreign direct investment (FDI), multinational corporations, and international trade organizations. It provides definitions and organizational models for multinationals, including international and global models. It also outlines the merits and demerits of multinationals for host countries. Additionally, it discusses key international economic institutions like the IMF, World Bank, and WTO/GATT. It explains their roles in facilitating global trade and financing. Finally, it summarizes some major WTO agreements regarding intellectual property (TRIPS) and investment measures (TRIMS).
The document provides an overview of doing business in India. It discusses that India welcomes foreign investment in many sectors under an automatic approval route or FIPB approval route. Key sectors that are attractive for foreign investment include IT/ITES, biotechnology, manufacturing, tourism, infrastructure and energy. The document also summarizes India's tax regime, laws governing business, and common forms of business enterprises like joint ventures, wholly owned subsidiaries, liaison offices and project offices.
FII refers to non-local investors who invest in the financial markets of another country. FIIs are established or registered outside of India but invest within India's financial markets. They include institutional investors like hedge funds, insurance companies, pension funds and mutual funds.
Some advantages of FII include bringing in capital that can be used productively, ensuring certainty of loan repayments, and allowing local management and control without risk of political domination. However, disadvantages include the burden of interest payments on foreign loans, the "hot money" concept where FIIs can quickly remove investments, and potential stock market booms and speculation influenced by non-economic factors.
The document summarizes India's foreign investment policy and the role of foreign capital in India. It discusses how India liberalized its foreign investment policies after 1991 to allow 100% foreign ownership in many sectors. It outlines the advantages of foreign capital such as economic development, job creation, and access to new technologies. However, it also notes disadvantages like risk from political changes, impact on exchange rates, and increased foreign dependence. The document provides an overview of India's historical approach to foreign investment dating back to policies established by Nehru and changes over time.
1. The document provides an overview of Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) in India. It defines FDI as long-term investment in physical assets of a company, while FII is generally short-term investment in financial assets.
2. It summarizes the key differences between FDI and FII, and outlines India's FDI policy guidelines, sectors, and procedures. Recent developments including the consolidated FDI policy issued in 2010 aimed to promote FDI through a framework that is transparent, predictable, and reduces regulatory burden.
3. Sector-specific guidelines prohibit FDI in certain sectors like retail trading, gambling, and real estate construction, while it is allowed in
‘FDI’ means investment by non-resident entity/person resident outside India in the capital of an Indian company as per FEMA Regulations.
Investments can be made by non-residents in the equity shares/ fully, compulsorily and mandatorily convertible debentures/ fully, compulsorily and mandatorily convertible preference shares of an Indian company, through the Automatic Route or the Government Route. Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment. Under the Government Route, prior approval of the Government of India is required. Proposals for foreign investment under Government route are considered by FIPB.
Foreign investment involves capital flows from one country to another, granting foreign investors ownership stakes in domestic companies and assets. Foreign investment plays an extraordinary role in global business by providing access to new markets, cheaper production facilities, and new technologies. The main channels of foreign investment are commercial loans, official flows, foreign direct investment (FDI), and foreign portfolio investment (FPI). India's foreign investment policies aim to facilitate foreign investment while regulating sectors like defense, mining, media, and retail trading. While foreign investment provides benefits like jobs and revenue, it also poses challenges like increasing foreign dependence and negatively impacting domestic industries in some cases.
This document discusses foreign direct investment (FDI), multinational corporations, and international trade organizations. It provides definitions and organizational models for multinationals, including international and global models. It also outlines the merits and demerits of multinationals for host countries. Additionally, it discusses key international economic institutions like the IMF, World Bank, and WTO/GATT. It explains their roles in facilitating global trade and financing. Finally, it summarizes some major WTO agreements regarding intellectual property (TRIPS) and investment measures (TRIMS).
The document provides an overview of doing business in India. It discusses that India welcomes foreign investment in many sectors under an automatic approval route or FIPB approval route. Key sectors that are attractive for foreign investment include IT/ITES, biotechnology, manufacturing, tourism, infrastructure and energy. The document also summarizes India's tax regime, laws governing business, and common forms of business enterprises like joint ventures, wholly owned subsidiaries, liaison offices and project offices.
FII refers to non-local investors who invest in the financial markets of another country. FIIs are established or registered outside of India but invest within India's financial markets. They include institutional investors like hedge funds, insurance companies, pension funds and mutual funds.
Some advantages of FII include bringing in capital that can be used productively, ensuring certainty of loan repayments, and allowing local management and control without risk of political domination. However, disadvantages include the burden of interest payments on foreign loans, the "hot money" concept where FIIs can quickly remove investments, and potential stock market booms and speculation influenced by non-economic factors.
The document summarizes India's foreign investment policy and the role of foreign capital in India. It discusses how India liberalized its foreign investment policies after 1991 to allow 100% foreign ownership in many sectors. It outlines the advantages of foreign capital such as economic development, job creation, and access to new technologies. However, it also notes disadvantages like risk from political changes, impact on exchange rates, and increased foreign dependence. The document provides an overview of India's historical approach to foreign investment dating back to policies established by Nehru and changes over time.
1. The document provides an overview of Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) in India. It defines FDI as long-term investment in physical assets of a company, while FII is generally short-term investment in financial assets.
2. It summarizes the key differences between FDI and FII, and outlines India's FDI policy guidelines, sectors, and procedures. Recent developments including the consolidated FDI policy issued in 2010 aimed to promote FDI through a framework that is transparent, predictable, and reduces regulatory burden.
3. Sector-specific guidelines prohibit FDI in certain sectors like retail trading, gambling, and real estate construction, while it is allowed in
‘FDI’ means investment by non-resident entity/person resident outside India in the capital of an Indian company as per FEMA Regulations.
Investments can be made by non-residents in the equity shares/ fully, compulsorily and mandatorily convertible debentures/ fully, compulsorily and mandatorily convertible preference shares of an Indian company, through the Automatic Route or the Government Route. Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment. Under the Government Route, prior approval of the Government of India is required. Proposals for foreign investment under Government route are considered by FIPB.
This video would describe about two important types of foreign investments- the foreign direct investment and foreign institutional investor.
FDI is when a company makes investment in foreign country by setting up the business over there.
FII is an entity or institution which makes investment in a foreign country by getting registered in the stock exchange of foreign market to trade in securities.
Foreign companies invest in India to take several advantages like relatively lower wages, cheaper production, new potential customers, tax exemptions, tapping growth potential of market, interest rate arbitrage.
It also benefits the host country by providing employment, increasing capital flow, greater investment opportunities, foreign exchange, transfer of new technology, skills & knowledge.
When FIIs invests in large in Indian stock market, rupee appreciates and the balance of payment improves
When FIIs withdraws, rupee depreciates and the balance of payment weakens
A comparison has been made between FDI and FII based on various factors like employment, tax rate, time period etc.
FDIs invests in the real economy while the FIIs invests in stock market only.
FDIs pay higher taxes as compares to the FIIs
FDIs generates mass employment as compared to FIIs that generates no or few employment opportunities
Both these foreign investments highly influence the country's economy and financial system.
It has its own positive and negative impacts. Do watch the video to know all about FDIs and FIIs.
Thank you for watching
Subscribe to DevTech Finance
This document provides an overview of foreign direct investment (FDI) and foreign institutional investment (FII) in India. It begins with defining FDI and FII, then outlines the key differences between the two. The presentation reviews India's FDI policy evolution and liberalization over time. It also provides sector-specific FDI guidelines for various industries like telecommunications, aviation, broadcasting, print media, and insurance. The procedural aspects of investing under the automatic and approval routes are also summarized.
This document provides an overview of foreign direct investment (FDI) and foreign institutional investors (FII) in India. It defines FDI and FII, describes their key features and differences. FDI refers to investment by a company from one country into business interests located in another country, while FII involves investment in a country's financial assets and secondary markets. The document outlines the advantages and disadvantages of both, their permitted sectors in India, impact on the economy, and concludes that while both help an economy grow, FDI proves more effective long-term.
The document provides an overview of foreign institutional investors (FIIs) in India. It discusses how FIIs started investing in India in 1992, the registration process for FIIs with SEBI, eligibility criteria, where FIIs can invest, taxation rules, the impact of FIIs on the Indian market including stock market volatility, and FIIs performance compared to foreign direct investment. It also summarizes FII inflows and outflows during a market crash in January 2008.
FDI and FII in India can contribute to economic growth. FDI refers to investment from foreign companies that have control over local firms. FII refers to investments from institutional investors in foreign stock markets. Key differences are that FDI goes to primary markets while FII goes to secondary markets, and FDI is generally longer term while FII is shorter term and more liquid. Factors affecting FDI include wages, infrastructure, economic growth potential, and political stability. India has increasingly liberalized and now allows FDI in many industries like infrastructure, IT, automobiles and more. FDI can promote industrialization, technology, jobs and exports but also risks unbalanced development and monopolies. FIIs have invested over $171
Foreign direct investment (FDI) in India was introduced in 1991 under the Foreign Exchange Management Act. It has since become a major political issue, with debates around further liberalizing FDI rules. While FDI into India has increased substantially, proposals to allow more foreign ownership in multi-brand retail met resistance from political parties concerned about effects on small retailers. The policy has been delayed and remains a contentious topic in Indian politics and economics.
Foreign portfolio investments in indiashwetaghag18
- Foreign portfolio investment in India has increased significantly since the early 1990s when regulations were changed to encourage foreign investment. Total FPI grew from $1.6 billion in 1993-94 to over $127 billion by December 2011.
- The composition of FPI has changed over time, with investment from foreign institutional investors (FIIs) like pension funds and mutual funds becoming the dominant source of FPI, accounting for 75% of total FPI in 2007-08.
- FPI has impacts on the Indian economy through effects on the stock market, currency exchange rates, and inflation levels.
The document provides an overview of foreign capital in India. It discusses the different types of foreign capital including foreign aid, private foreign investment, foreign direct investment, and foreign portfolio investment. It notes that foreign capital plays an important role in the early stages of a country's industrialization by increasing resources, undertaking risks, providing technical know-how, setting high standards, facilitating marketing and exports, reducing trade deficits, and increasing competition. The document also discusses India's pre-liberalization period and the need for foreign capital to supplement domestic investment and speed up economic development.
This document provides an overview of foreign direct investment (FDI) and foreign portfolio investment (FPI) in India. It defines FDI and FPI, discusses their advantages and disadvantages, and compares the key differences between them. FDI refers to direct investment in facilities and assets in a foreign country, while FPI is the purchase of stocks and bonds on foreign exchanges. The document outlines India's policies and limits on FDI in different industries, as well as factors influencing FDI inflows into India.
Effects of fdi and fii on indian economySwapnil Matte
This document discusses the effects of foreign direct investment (FDI) and foreign institutional investment (FII) in the Indian economy. It defines FDI and FII, describes the types of FDI and its impacts. The document also outlines the advantages and disadvantages of both FDI and FII, and examines their growth in India over time. It analyzes sector-wise FDI inflows and concludes that FDI has played an important role in developing the Indian economy through financial stability, productivity growth, and employment generation.
Objectives of foreign direct investmentsabin kafle
1)Sustaining a high level of investment
- Since the underdeveloped countries want to industrialized themselves within a short period of time, it becomes necessary to raise the level of investment substantially. This requires, in turn, a high level of savings.However, because of general poverty of masses, the savings are often very low. Hence emerges a resource gap between investment and savings. This gap has to be filled through foreign capital.
Foreign direct investment (FDI) refers to a controlling ownership in a foreign business enterprise. It includes mergers, acquisitions, building facilities, and reinvesting profits. Foreign investors can incorporate a wholly owned subsidiary, acquire shares, or participate in a joint venture. Foreign investment was introduced in India in 1991 to liberalize the economy. Foreign institutional investors (FIIs) are large foreign companies that invest in Indian assets. They include investment banks and mutual funds. Over 1450 FIIs are registered with SEBI in India and influence market trends and inflows.
Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) are two types of foreign investment in India. FDI refers to long-term investment in physical assets and management control, while FII refers to short-term investment in financial assets without management control. The presentation provides an overview of FDI and FII guidelines in India, including the distinction between the two, sector-specific guidelines for different industries, and recent developments in India's consolidated FDI policy.
Foreign direct investment (FDI) refers to cross-border investment by a company or individual in business interests located in another country. FDI plays an important role in India's economic development by providing capital, jobs, technology and boosting growth. While India receives around 25% of China's FDI, various sectors like infrastructure, automotive, airlines and textiles have seen increased FDI inflows in recent years due to government reforms. FDI can benefit India through infrastructure development, increased competition and technology advancement.
Brief overview of Foreign Portfolio Investments - impact on the economy and impact by the economic variables, with special statistics & focus on India.
This document provides an overview of foreign capital in India. It discusses the different forms of foreign capital including foreign direct investment, foreign portfolio investment, external aid, and external commercial borrowings. FDI can take the form of joint ventures, technical collaborations, or private placements. FPI includes investments in stocks, bonds, and funds raised through instruments like GDRs and ADRs. External aid may come from other governments, international organizations, or private sources, and can be tied to certain conditions or untied. ECBs comprise loans and credits from foreign commercial and multilateral sources used to finance commercial activities in India. The document also outlines advantages and disadvantages of foreign capital.
Foreign Institutional Investment in IndiaDebarun Dey
Foreign Institutional Investment In India provides an overview of foreign institutional investment (FII) in India. It defines FII and outlines the history and growth of FII in India. The presentation covers FII regulations, application process, investment conditions, taxation, and compares FII to foreign direct investment. It also discusses the impact of FII on the Indian stock market and economy.
1. The document provides an overview of Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) in India. It defines FDI as long-term investment in physical assets of a company, while FII is generally short-term investment in financial assets.
2. It summarizes the liberalization of India's FDI policy over time, with caps increasing from 40% to 100% in most sectors. Recent developments include consolidation of various FDI rules and further liberalization of certain policies.
3. Sector-specific guidelines prohibit FDI in certain sectors like retail, gambling, but allow up to 74% in telecommunications depending on activities. Procedural aspects for compliance with FDI rules
Doing Business in India Simplified. Interesting information on Why India is attractive investment destination?, India's Industrial Policy, FDI in India, FII in India, Exchange Control Regulations in India, ADRs, GDRs, Laws governing business in India, Important regulatory authorities for Foreign Investment, Various Growth Sectors of Economy for Foreign Investments, Tax Regime of India, etc.
This video would describe about two important types of foreign investments- the foreign direct investment and foreign institutional investor.
FDI is when a company makes investment in foreign country by setting up the business over there.
FII is an entity or institution which makes investment in a foreign country by getting registered in the stock exchange of foreign market to trade in securities.
Foreign companies invest in India to take several advantages like relatively lower wages, cheaper production, new potential customers, tax exemptions, tapping growth potential of market, interest rate arbitrage.
It also benefits the host country by providing employment, increasing capital flow, greater investment opportunities, foreign exchange, transfer of new technology, skills & knowledge.
When FIIs invests in large in Indian stock market, rupee appreciates and the balance of payment improves
When FIIs withdraws, rupee depreciates and the balance of payment weakens
A comparison has been made between FDI and FII based on various factors like employment, tax rate, time period etc.
FDIs invests in the real economy while the FIIs invests in stock market only.
FDIs pay higher taxes as compares to the FIIs
FDIs generates mass employment as compared to FIIs that generates no or few employment opportunities
Both these foreign investments highly influence the country's economy and financial system.
It has its own positive and negative impacts. Do watch the video to know all about FDIs and FIIs.
Thank you for watching
Subscribe to DevTech Finance
This document provides an overview of foreign direct investment (FDI) and foreign institutional investment (FII) in India. It begins with defining FDI and FII, then outlines the key differences between the two. The presentation reviews India's FDI policy evolution and liberalization over time. It also provides sector-specific FDI guidelines for various industries like telecommunications, aviation, broadcasting, print media, and insurance. The procedural aspects of investing under the automatic and approval routes are also summarized.
This document provides an overview of foreign direct investment (FDI) and foreign institutional investors (FII) in India. It defines FDI and FII, describes their key features and differences. FDI refers to investment by a company from one country into business interests located in another country, while FII involves investment in a country's financial assets and secondary markets. The document outlines the advantages and disadvantages of both, their permitted sectors in India, impact on the economy, and concludes that while both help an economy grow, FDI proves more effective long-term.
The document provides an overview of foreign institutional investors (FIIs) in India. It discusses how FIIs started investing in India in 1992, the registration process for FIIs with SEBI, eligibility criteria, where FIIs can invest, taxation rules, the impact of FIIs on the Indian market including stock market volatility, and FIIs performance compared to foreign direct investment. It also summarizes FII inflows and outflows during a market crash in January 2008.
FDI and FII in India can contribute to economic growth. FDI refers to investment from foreign companies that have control over local firms. FII refers to investments from institutional investors in foreign stock markets. Key differences are that FDI goes to primary markets while FII goes to secondary markets, and FDI is generally longer term while FII is shorter term and more liquid. Factors affecting FDI include wages, infrastructure, economic growth potential, and political stability. India has increasingly liberalized and now allows FDI in many industries like infrastructure, IT, automobiles and more. FDI can promote industrialization, technology, jobs and exports but also risks unbalanced development and monopolies. FIIs have invested over $171
Foreign direct investment (FDI) in India was introduced in 1991 under the Foreign Exchange Management Act. It has since become a major political issue, with debates around further liberalizing FDI rules. While FDI into India has increased substantially, proposals to allow more foreign ownership in multi-brand retail met resistance from political parties concerned about effects on small retailers. The policy has been delayed and remains a contentious topic in Indian politics and economics.
Foreign portfolio investments in indiashwetaghag18
- Foreign portfolio investment in India has increased significantly since the early 1990s when regulations were changed to encourage foreign investment. Total FPI grew from $1.6 billion in 1993-94 to over $127 billion by December 2011.
- The composition of FPI has changed over time, with investment from foreign institutional investors (FIIs) like pension funds and mutual funds becoming the dominant source of FPI, accounting for 75% of total FPI in 2007-08.
- FPI has impacts on the Indian economy through effects on the stock market, currency exchange rates, and inflation levels.
The document provides an overview of foreign capital in India. It discusses the different types of foreign capital including foreign aid, private foreign investment, foreign direct investment, and foreign portfolio investment. It notes that foreign capital plays an important role in the early stages of a country's industrialization by increasing resources, undertaking risks, providing technical know-how, setting high standards, facilitating marketing and exports, reducing trade deficits, and increasing competition. The document also discusses India's pre-liberalization period and the need for foreign capital to supplement domestic investment and speed up economic development.
This document provides an overview of foreign direct investment (FDI) and foreign portfolio investment (FPI) in India. It defines FDI and FPI, discusses their advantages and disadvantages, and compares the key differences between them. FDI refers to direct investment in facilities and assets in a foreign country, while FPI is the purchase of stocks and bonds on foreign exchanges. The document outlines India's policies and limits on FDI in different industries, as well as factors influencing FDI inflows into India.
Effects of fdi and fii on indian economySwapnil Matte
This document discusses the effects of foreign direct investment (FDI) and foreign institutional investment (FII) in the Indian economy. It defines FDI and FII, describes the types of FDI and its impacts. The document also outlines the advantages and disadvantages of both FDI and FII, and examines their growth in India over time. It analyzes sector-wise FDI inflows and concludes that FDI has played an important role in developing the Indian economy through financial stability, productivity growth, and employment generation.
Objectives of foreign direct investmentsabin kafle
1)Sustaining a high level of investment
- Since the underdeveloped countries want to industrialized themselves within a short period of time, it becomes necessary to raise the level of investment substantially. This requires, in turn, a high level of savings.However, because of general poverty of masses, the savings are often very low. Hence emerges a resource gap between investment and savings. This gap has to be filled through foreign capital.
Foreign direct investment (FDI) refers to a controlling ownership in a foreign business enterprise. It includes mergers, acquisitions, building facilities, and reinvesting profits. Foreign investors can incorporate a wholly owned subsidiary, acquire shares, or participate in a joint venture. Foreign investment was introduced in India in 1991 to liberalize the economy. Foreign institutional investors (FIIs) are large foreign companies that invest in Indian assets. They include investment banks and mutual funds. Over 1450 FIIs are registered with SEBI in India and influence market trends and inflows.
Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) are two types of foreign investment in India. FDI refers to long-term investment in physical assets and management control, while FII refers to short-term investment in financial assets without management control. The presentation provides an overview of FDI and FII guidelines in India, including the distinction between the two, sector-specific guidelines for different industries, and recent developments in India's consolidated FDI policy.
Foreign direct investment (FDI) refers to cross-border investment by a company or individual in business interests located in another country. FDI plays an important role in India's economic development by providing capital, jobs, technology and boosting growth. While India receives around 25% of China's FDI, various sectors like infrastructure, automotive, airlines and textiles have seen increased FDI inflows in recent years due to government reforms. FDI can benefit India through infrastructure development, increased competition and technology advancement.
Brief overview of Foreign Portfolio Investments - impact on the economy and impact by the economic variables, with special statistics & focus on India.
This document provides an overview of foreign capital in India. It discusses the different forms of foreign capital including foreign direct investment, foreign portfolio investment, external aid, and external commercial borrowings. FDI can take the form of joint ventures, technical collaborations, or private placements. FPI includes investments in stocks, bonds, and funds raised through instruments like GDRs and ADRs. External aid may come from other governments, international organizations, or private sources, and can be tied to certain conditions or untied. ECBs comprise loans and credits from foreign commercial and multilateral sources used to finance commercial activities in India. The document also outlines advantages and disadvantages of foreign capital.
Foreign Institutional Investment in IndiaDebarun Dey
Foreign Institutional Investment In India provides an overview of foreign institutional investment (FII) in India. It defines FII and outlines the history and growth of FII in India. The presentation covers FII regulations, application process, investment conditions, taxation, and compares FII to foreign direct investment. It also discusses the impact of FII on the Indian stock market and economy.
1. The document provides an overview of Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) in India. It defines FDI as long-term investment in physical assets of a company, while FII is generally short-term investment in financial assets.
2. It summarizes the liberalization of India's FDI policy over time, with caps increasing from 40% to 100% in most sectors. Recent developments include consolidation of various FDI rules and further liberalization of certain policies.
3. Sector-specific guidelines prohibit FDI in certain sectors like retail, gambling, but allow up to 74% in telecommunications depending on activities. Procedural aspects for compliance with FDI rules
Doing Business in India Simplified. Interesting information on Why India is attractive investment destination?, India's Industrial Policy, FDI in India, FII in India, Exchange Control Regulations in India, ADRs, GDRs, Laws governing business in India, Important regulatory authorities for Foreign Investment, Various Growth Sectors of Economy for Foreign Investments, Tax Regime of India, etc.
Growth and Development of FDI on Indian EconomyIJMER
India has been attracting substantial of foreign direct investment since last few decades,
highly in services sector, telecommunications, software products, real estate etc. FDI are highly
promoting manufacturing sector of India’s exports & attracting more number of earnings on Foreign
exchange, Institutional Investments, MNCs and speeding up our economic growth through Technology
transfer, Employment generation and improved access to managerial expertise, global capital, product
markets and distribution network. FDI bring out the generation-wise innovation, hidden technology,
spending more on research & development to retain our strength in the globalised competitor
products. Indian economy is going to over track the developed and developing countries. Recently, due
to the recession most of the countries have not able to run their investment as well, but India has been
managed better then developed country without elevated struggling. This paper analyzes the growth
and development of FDI and it discussed the Indian economic growth through FDI. In addition it
explains and showed the various sector-wise FDI performances in India
Most countries depend on foreign capital for economic development. Foreign investment has contributed to industrialization and economic growth in recipient economies. There are two main types of foreign capital: foreign direct investment (FDI), which is controlling ownership of a business in another country; and foreign institutional investment (FII), which is investment from institutional investors like funds registered outside the country where they are investing. India initially had policies against foreign investment but began reforms in 1991 to liberalize FDI and FII, with the goal of attracting more foreign capital to support development.
This document provides information about the regulatory framework for foreign direct investment (FDI) and foreign institutional investment (FII) in India. It discusses the history and liberalization of FDI policies in India. It outlines the sectors that allow FDI and the caps on foreign ownership. It also discusses the legal basis and procedures for FDI approval. For FIIs, it defines what an FII is, the eligible entities, and the registration process with SEBI.
Project on Forign Institutional Investors Secondary DataRuchita Iyer
The document provides information on Foreign Institutional Investors (FIIs) in India. Some key points:
- FIIs are entities established outside of India that propose investments in Indian securities. They must register with SEBI.
- The biggest source of FII investment is Participatory Notes, which allow overseas investors to invest in Indian markets without direct registration.
- FIIs bring both benefits like improved market breadth/depth and risks like increased speculation. Strict regulations govern FII investment, registration, and ongoing compliance.
Foreign direct investment (FDI) refers to direct investment into production or business operations in a country by a company located in another country, such as by establishing subsidiaries or acquiring domestic firms. Foreign portfolio investment (FPI) involves passive investment in a country's financial assets rather than management control. While both FDI and FPI bring capital into a country, FDI is generally considered longer-term and brings additional benefits like job creation, technology transfer, and infrastructure development. The document outlines the definitions, advantages, and differences between FDI and FPI.
Foreign direct investment (FDI) involves establishing business operations or acquiring assets in another country. FDI benefits developing countries like India by providing long-term capital and advanced technologies. It allows access to new markets and resources while potentially reducing production costs. However, FDI also carries risks like hindering domestic investment, political instability, exchange rate impacts, and higher costs of establishing foreign operations. In India, FDI in private banks is permitted up to 74% ownership while it is limited to 20% in public sector banks.
The document discusses the roles of foreign direct investment (FDI) and foreign institutional investment (FII) in India. It provides definitions and concepts of FDI and FII, including methods of FDI, types of FDI, benefits and disadvantages of FDI, the role of FDI in India. It also discusses concepts of FII, how FII started in India, where FII can invest, advantages and disadvantages of FII. The document compares FDI and FII and discusses the status of FII in India and recent developments. It concludes with a discussion of current international issues including dumping, agricultural protectionism, economic warfare, and price fluctuations of oil.
The document discusses venture capital in India. It defines venture capital and explains its role in funding innovative startups and entrepreneurship in India. It traces the origin and growth of venture capital in India from the 1970s onward. It discusses some of the major venture capital funds established in India and how they provide funding through equity, debt or hybrid instruments. The document also summarizes the venture capital investment process and some notable companies that received funding from major VC firms in India like Helion Ventures and Accel Partners. In conclusion, it notes that venture capital investment in India saw declining growth in recent years due to stringent policies and lack of viable exit options.
This document discusses foreign direct investment (FDI) in multi-brand retail in India. It begins with background on the team members presenting and an outline of the presentation. It then provides definitions of FDI and foreign institutional investment (FII) and distinguishes between the two. The document discusses opportunities for FDI in retail in India such as benefits to farmers and consumers, as well as challenges such as political instability and public opposition. It analyzes the retail sector and provides sector-wise analysis of FDI inflows in India. The document concludes with a comparison of FDI in India and China.
The document discusses foreign direct investment (FDI) in India, particularly in the multi-brand retail sector. It provides definitions of FDI and foreign institutional investment (FII), and compares the two. It outlines the key facts about FDI in India, including major investing countries and cities. The document also discusses the advantages and disadvantages of allowing 51% FDI in multi-brand retail in India. Overall, it analyzes the history, patterns, and impact of FDI in India as well as how India's FDI compares to China's.
Foreign Institutional Investors (FIIs) are entities established outside of India that make investment proposals in India on behalf of sub-accounts such as foreign corporations, individuals, and funds. FIIs invest primarily through participatory notes issued by registered FIIs to overseas investors. The document discusses the importance of FIIs in developing countries like India to help bridge technological gaps, optimize resource use, and balance payments balances through foreign capital inflows. It also outlines various policy measures taken by the Indian government to attract more FII investments.
This document is a project submitted by Ronak Karanpuria to Prof. N.L. Mitra at the National Law School of India University in Bangalore for the subject of Investment & Securities Law during the 2013-14 trimester. It examines India's foreign direct investment policy after 2002. The project includes an acknowledgment, index, introduction discussing the opening of FDI in India in 1991 to boost the economy, and sections on FDI policy and regulation, the changing dynamics of foreign investment including major investing countries and sectors, and issues with FDI in India.
FIIs refer to foreign institutional investors investing in India's financial markets. After a 1991 balance of payments crisis, India liberalized and allowed portfolio investments by FIIs for the first time. FIIs are regulated by SEBI and invest primarily in India's two largest stock exchanges, BSE and NSE. While FIIs have benefited the Indian economy through increased capital flows and improved corporate governance, they also introduce volatility, as seen during market falls caused by FII withdrawals. Overall, FIIs have had a major impact on the Indian stock market and its movements often follow FII investment trends.
An Introduction to Law of Investment in Indonesia such as background of investment, history of investment, related prevailing law of investment, scope of investment, business field, treatment of investment, and related institution such as United Nations Conference on Trade and Development (UNCTAD) and Indonesia Coordinating Board (Badan Koordinasi Penanaman Modal - BKPM)
International investment and foreign direct investment play an important role in the global economy. There are different types of foreign investment such as foreign direct investment, portfolio investment, and investment in depository receipts. Foreign direct investment provides benefits like increased investment, technology transfer, and competition but it also faces criticism like undermining economic autonomy. Factors like natural resources, market size, production efficiency, interest rates, and government policies affect international investment flows. India moved from a restrictive policy on foreign investment pre-1991 to a more liberalized policy with automatic approval for foreign investment in many industries.
This document discusses foreign investment in India, including foreign direct investment (FDI) and foreign institutional investment (FII). It provides background on the Indian economy and types of foreign capital. FDI occurs when an investor in one country acquires assets in India to manage them. India is an attractive destination for FDI due to factors like its large market, skilled labor force, and tax incentives. FII involves foreign companies purchasing equity on Indian stock markets for short-term gains. The document compares the differences between FDI and FII and concludes that most developing countries now view foreign investment positively due to changes in their political and economic systems over the last few decades.
Foreign Direct & Portfolio Investments Vipul Kumar
Foreign direct and portfolio investments refer to investments made by entities in one country into assets or businesses located in another country. Specifically, the document discusses:
- Foreign direct investment (FDI) which involves controlling ownership of foreign assets or businesses. FDI can be horizontal, vertical, or conglomerate. Advantages include economic development, easier trade, jobs, and human capital development. Disadvantages include hindering domestic investment and political risk.
- Foreign portfolio investment (FPI) made through foreign institutional investors (FIIs) such as mutual funds. FIIs must register with regulatory bodies. There are limits on the amount and type of assets FIIs can purchase in another country to limit their influence.
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1. 67
Introduction
Foreign capital is flow of capital from one country to another by a foreign
government institution, private individual, and international organization in a country.
Foreign capital includes foreign aid, commercial borrowings and foreign investment in the
formsofforeigncollaboration,loanintheformofforeigncurrency,investmentsinequitycapital etc.
Foreign investment refers to investment by foreign investors in shares,
debentures, and bonds of Indian companies. Foreign direct investments and foreign
portfolio investments are the two important forms of foreign investments.
Why invest in India
There are several good reasons for investing in India.
• One of the largest economies in the world.
• Strategic location access to vast domestic and South Asian market.
• A large and rapidly growing consumer market up to 300 million people
constitute the market for branded consumer goods- estimated to be growing
8 % per annum demand for several consumer products is growing at over
12% per annum.
• Foreign investment is welcomed; approval is required but is automatic in sixty
categories of industries.
• Skilledmanpowerandprofessionalmanagersareavailableatcompetitivecost.
Kamna Dhawan & Shikha Jain
Faculty of Commerce
Baikunthi Devi Kanya Mahavidyalaya, Agra, U.P.
Abstract
In an era of liberalization, privatization and globalization there has been a continuous flow of
man, money, and material through out the globe. The flow of long term capital has become the
most determining factor for the economic changes in the recent times. Almost every developed
country of the world in its initial stages of development had made use of foreign capital to
make up the deficiency of domestic saving. Foreign capital has played an important role in the
economic development of India. Foreign capital had started flowing in India from a long time
back i.e. East India Company. But that time the policy relatives to foreign capital were
favorable to foreign capitalist and against India. After independence, foreign capital and
investment was used as a tool for promoting economic development and to make balance of
payment favorable.
Keywords:Globalization,ForeignCapital,Domestic,Investment.
TRENDS OF FOREIGN CAPITAL AND
FOREIGN INVESTMENT IN INDIA
Published By:
S.R.S.D. Memorial Shiksha Shodh Sansthan
AGRA, INDIA
www.srsshodhsansthan.org
ISSN-2393-946X
Email at: srsdmsss@gmail.com
Chief Editor: Dr. S.B. Sharma
A Biannual Peer Reviewed Refereed International
Journal of Multidisciplinary & Contemporary Researches
Vol. I, Issue I, June 2015, pp. 67-75
UTOPIA OF GLOBAL EDUCATION
th th th
Received: Oct. 10 , 2014, Revised: Nov. 20 , 2014, Accepted: Sept. 29 , 2014
2. 68
• One of the largest manufacturing sectors in world spanning all most all areas
of manufacturing activities.
• One ofthelargestpoolsofscientists,engineers,techniciansandmanagersinworld.
• Rich base of mineral and agricultural resources.
• Long history of market economy infrastructure
• Sophisticated financial sector.
• Vibrant capital market with over 9,000 listed companies.
• Well developed research and development infrastructures and technical and
marketing services.
• Policy environment that provides freedom of entry, investment location, choice
of technology, production, import and export.
• Well-balanced package of fiscal incentives.
• A sophisticated legal and accounting system.
• English is widely spoken and understood.
• Rupee is convertible on current account at market-determined rate.
• Free and full repatriation of capital, technical fee, royalty & and dividends.
• Foreign brands names are freely used.
• No income tax on profits derived from exports of goods.
• Complete exemption from custom duty on industrial inputs and corporate tax
holiday for five years for 100% export oriented units and units in export
processing zones
• Corporate tax applicable to foreign companies of a country with which
agreement for avoidance of double taxation exists can be one, which is lower
betweentheratesprevailinginanyoneof thetwocountriesandthetreatyrate.
• A long history of stable parliamentary democracy.
Governmentpolicytowardsforeigncapital/foreigninvestmentinIndia
The first foreign capital policy was declared by Late Prime Minister Jawahar
th
Lal Nehru on 6 April 1949 for economic assistance and technical cooperation from
any corner of the world. The main elements of this policy were as follows.
• NodiscriminatorypolicywillbeexercisedagainstforeigncapitalandIndiancapital.
• In case of nationalization of industries, permission for fair compensation would
bemade.
• Permission for fair compensation would be made in case of nationalization of
industries.
• Once foreign capital is allowed entry into India, it will enjoy all those facilities
which are available to indigenous capital.
Trends of Foreign Capital...
3. 69
• Foreign capital may be subjected to control, if the national interests so
warrant.
• Maximum limit of foreign capital in any enterprise would be 40%.
• Period of foreign collaboration would vary from 5 to 8 years.
• No foreign company could either borrow or receive deposits without the prior
approval of reserve bank of India.
• In order to control foreign capital, foreign exchange regulation act, (FERA)
was enforced in 1973. [ which has been replaced by FEMA in 1999 ]
Foreign investment policy 1991/ new foreign investment policy
Foreign investment policy of 1991 was very liberal and it lifted the ceilings on
inflow of foreign investment. Earlier, foreign equity participation was restricted up to
40 per cent, but now 100 per cent equity participation is allowed. Earlier all foreign
investment and technological agreements needed prior permission, but now the new
policy has allowed the foreign capital with automatic approval in many industries.
Earlier, foreign capital was used only for capital goods and high priority industries, but
now it is extended to all types of industries. Moreover, huge incentives and concessions
are granted for the flow of foreign capital in the country. Following are the main
features of new foreign investment policy.
1. High technology and high priority industries: For promoting high
technology and high priority industries Govt. allowed automatic permission to
foreign direct investment.
2. Benefits of repatriation: Foreign investors are permitted to repatriate
profits, dividends; interest earned, royalty, free for technical services,
capitalist. This is a big incentive given to foreign investors in India
3. Foreign institutional investors (FIIS): These investors can invest under the
portfolio investment. Earlier these FIIs were not permitted to invest beyond 24
percent of paid-up capital of Indian company but under the new policy, with
the approval of shareholders of the company by a special resolution, they can
invest up to sectoral cap/statutory limit on foreign investment in the respective
area. It will lead to considerable increase in foreign investment.
4. Foreign investment in small industries: Under new small industrial policy,
foreign entrepreneurs can have 24 percent share capital in small industries
without any prior approval.
5. Export promotion: For the purpose of export promotion, government allowed
100 percent foreign equity participation in the export oriented sector. It includes
–exportorientedunits,exporthouses,tradinghouses,supertradinghouses
6. Liberal approach: Present approach towards foreign capital is to welcome its
inflow. The entry of foreign capital has been permitted in consumer goods
and capital goods industries including high priority industries.
Kamna Dhawan & Shikha Jain
4. 70
7. Foreign capital for infrastructural development: The government is
providing many concessions and facilities to invite foreign investment for the
development of infrastructure like roads, power, telecommunication, ports etc.
8. Clearance for foreign investment: foreign investment in any project involving
investment up to Rs. 1200 Crore requires clearance from foreign investment
promotion board working under ministry of finance
9. Investment commission: Investment commission has been set up in
December, 2004 to facilitate greater FDI inflow in India. This commission
motivates the foreign investors to invest in India and provides them necessary
support.
10. Various forms of foreign capital: Earlier foreign capital was raised mainly
through foreign aid and commercial borrowings. But now it is raised in various
forms, such as:
a. Foreign collaboration: It means setting up an enterprise jointly by
the foreigner entrepreneur and Indian entrepreneur in India.
b. Foreign equity participation: It is in the form of foreign diverting
investment and portfolio investment.
c. Investment by foreign institutional investors, non resident indians
and other foreign investors: Overseas corporate bodies, NRIs,
foreign individual investors are allowed to invest through purchasing
shares, debentures bonds from Indian capital markets.
d. Raising of funds by indian corporate sector in foreign markets:
Indian corporate sector is allowed to raise funds from the foreign
capital markets by issuing global depository receipts (GDRs),
American depository receipts (ADRs), foreign currency convertible
bonds (FCCBs).
11. Issue of global depository reciepts (GDRS), american depository receipts
(ADRS) and foreign currency convertible bonds (FCCBS) by indian
companies: Since 1992, Indian companies which satisfy certain conditions
have been allowed to access foreign capital markets. These companies can
raise funds from the from capital markets by issuing GDRs, ADRs and FCCBs.
The issue of GDRs, ADRs and FCCBs are known as euro issues.
12. Tax concessions to nris: To attract foreign capital from non-resident Indians,
government in recent years, announced a number of tax concessions, tax
holiday for a certain period on profits of new industrial undertakings,
lowering tax rates on short-term and long-term capital gains for NRIs etc.
13. Fair treatment to foreign investment: The government made it clear that it
will not place any restriction or impose any conditions on foreign enterprises.
14. Joint ventures: The conditions of establishing joint ventures have been made
Trends of Foreign Capital...
5. 71
simpler and liberal form January, 1997. The foreign investors can own even
more than 51 percent share capital in joint ventures.
15. Organisation of boards: The new policy provides for the organization of
boards for direct foreign capital investment in selected areas. These boards
will negotiate with multinational companies for setting up their enterprises in
India.
16. Foreign investment implementation autority (FIIA): It was established in
1999 within the ministry of industry. It ensures that approvals for foreign
investments are quickly translated into actual inflows. It also sorts out
operational problems of foreign investors.
17. Technological collaborations: For promoting the inflow of modern
technology, the new foreign investment policy granted various concessions to
technical collaboration agreements.
18. Wholly owned foreign enterprises: According to new foreign capital policy,
the multinationals have been given freedom to establish their wholly owned
subsidiaries in India.
19. Disinvetment by foreign investors: Earlier disinvestment of equity (sale of
controlling shares) held by foreign investors in India could be done at price
fixed by RBI.
20. Setting up of e-biz project: For promoting inflow of foreign investment,
government has announced e-biz project. It aims at providing online single
window to prospective overseas investors.
In short, the new foreign investment policy is more liberal and encouraging for
foreign investors. It aims at encouraging more and more foreign investment in India.
India's share in global foreign direct investment in the year 2011 was 1.95 percent. In
order to increase it, the procedure for making foreign investment should be simplified
and efforts should be made to win the confidence of foreign investors.
Consolidated FDI policy, 2013 :-
Department of industrial policy and promotion has issued a consolidated
foreign direct investment policy. This policy came into effect from April 5, 2013.
This consolidated policy consolidated all prior policies / regulations/ press
notes/ circulars which were issued by the government from time-to-time. The
present policy is a consolidation/compilation of all earlier government
notifications related to FDI which were in force and were effective as April 4,
2013. The objective of new FDI policy is to promote foreign direct investment
through a consolidated policy which is transparent, predictable, simple, and
clear and reduces regularly burden. Government aims to raise India's share in
global FDI to 5 per cent by 2017. The present FDI policy is investor-friendly, as
investor has to study only one policy.
Kamna Dhawan & Shikha Jain
6. 72
Trends of foreign capital and foreign investment in india
Amount of foreign aid received by india
India's Outstanding Commercial Borrowings
Foreign Investment Inflows In India
Share Of Top Seven Sectors Attracting FDI In India
(April 2000 To March 2014)
YEAR CONCESSIONAL LOAN GRANTS
1990-91
2000-01
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
7,601
17,184
28,283
48,969
35,895
48,063
45,518
46,453
522
941
1,243
958
1,537
1,096
1,242
1,431
(SOURCE : ECONOMIC SURVEY, 2013-14)
LOANS FROM
FOREIGN BANKS
NON-RESIDENT
INDIANS' DEPOSITS
TOTAL COMMERCIAL
BORROWINGS
1997
2007
2009
2010
2011
2012
2013
2014
YEAR
51,454
1,80,669
3,18,209
3,19,221
4,48,448
6,14,623
7,62,438
8,80,740
39,527
1,79,788
2,10,118
2,17,062
2,30,812
2,99,840
3,85,202
6,24,101
90,981
3,60,457
5,28,327
5,36,283
6,25,770
8,36,405
11,47,640
15,04,841
(SOURCE : ECONOMIC SURVEY, 2013-14)
1990-91
2000-01
2008-09
2009-10
2010-11
2011-12
2012-13 (APR. TO JAN.)
97
4,031
37,838
37,763
32,901
32,955
24,625
6
2,760
(-) 13,855
32,376
31,471
17,171
22,047
103
6,791
23,983
70,139
64,372
50,126
46,672
YEAR FDI PORTFOLIO INVESTMENT TOTAL
(SOURCE : HANDBOOK OF STATISTIC ON INDIAN ECONOMY, 2011-12; RBI
BULLETIN, APRIL 2013)
1
2
3
4
5
6
7
8
SN SECTOR % SHARE IN TOTAL FDI
SERVICE SECTOR (FINANCIAL AND NON-FINANCIAL)
CONSTRUCTION ACTIVITIES
TELE COMMUNICATION
COMPUTER SOFTWARE AND HARDWARE
DRUGS & PHARMACEUTICALS
CHEMICALS
POWER
ALL OTHER AREAS
18
11
7
6
5
4
4
45
(SOURCE : DEPARTMENT OF INDUSTRY AND PROMOTION, FACT SHEET, MARCH 2014)
TOTAL 100
Trends of Foreign Capital...
7. 73
Contribution of foreign capital in the economic development of india/ advantage
of foreign capital/ foreign investment :
1. Reduction in inflation: Foreign capital has also made import of essential
goods on a large scale possible. It increases total availability of goods and
reduces the rate of inflation. With the inflow of foreign capital, production in
the country has increased and increased production ensures stable prices,
even if demand increases. Thus, foreign capital helps in checking rise in prices.
2. Availability of economic and social overheads: Inadequate availability of
economic and social overheads, viz. Railways, roads, canals, power resources,
communication system, etc., was another problem of Indian economy. Foreign
capital has proved helpful in the development of these projects. It has
favorably affected the growth of agriculture and industry in the country. As a
result, rapid growth of the economy could become possible.
3. Helpful in export promotion: Value of Indian exports is less than its imports.
Increase in exports therefore becomes necessary. Foreign capital can make
significant contribution in this respect. Many foreign companies are allowed to
install their units in India, on the condition that they would export certain
percentage of their production. Foreign capital has therefore been
instrumental in promoting exports.
4. Availability of capital: Indian economy suffers from lack of capital. Lack of
capital has hindered the rate of economic growth. Since savings do not
increase in the same ratio as the income does, this gap is filled by foreign
capital. Thus, to increase the availability of capital to the desired extent, role
of foreign capital has been significant.
5. Supply of food grains: Most of the foreign aid received by India is in the form
of food grains, especially the one under pla-480. Import of food grain has
increased the ability of the country to meet shortage of food grains.
6. Increase in employment: Many industrial units have been set up with foreign
capital and by foreign collaboration. Many MNCs have also set up branches
in India. All this has created employment opportunities in India.
7. Availability of capital goods: in order to extend its programme of
industrialization, it becomes necessary for Indian economy to import capital
goods like machines, equipments, etc. But it becomes difficult to import these
essential goods due shortage of foreign exchange. Foreign capital, by solving
thisdifficulty,proveshelpfulinmakingavailableimportedcapitalgoods.
8. Availability of modern technology: Modern technology is of paramount
significance to the development of Indian economy. But the available
technique in India is old and inefficient. The use of modern technology could
become possible with foreign capital and aid. Foreign capital is
accompanied with technical know-how, and trade experience. Modern
Kamna Dhawan & Shikha Jain
8. 74
technology enhances the productivity of economy.
9. Availablity of capital goods: There was disequilibrium in the balance of
payments positions of India. Imports were increasing at a faster rate than the
exports. It gave rise to the problem of shortage of foreign exchange. On
account of foreign capital, availability of foreign exchange has increased.
Consequently, foreign capital has helped very much in solving the problem of
balance of payments.
10. Availability of risk capital: Indian capital is shy by nature. Private
entrepreneurs do not like to invest capital in basic industries and new ventures
where the element of risk is great. Foreign direct investment serves as venture
capital and thus makes up this deficiency. As a result of foreign capital
development has taken place in basic industries and risky ventures like iron
and steel, coil, oil exploration, energy-generation etc. The foreign capital has
borne the pioneering risk.
11. Exploitation of natural resources: Natural resources like minerals, water
resources, etc. Are found in plenty in India. But due to lack of capital and
technical know-how, the same have not been properly exploited. Foreign
capital will help to make proper exploitation of natural resources.
Conclusion
The Indian government is committed to the concept of globalization and
liberalization. Its package is being enlarged every year; hopefully, it may be able to
attract more and more foreign investment including NRIs investment in the years to
come. For this, a better investment climate could be created and the bottlenecks in the
path may be removed. Today, china is the largest recipient of inflows among all
developing countries in Asia. It's main reason being better investment climate which
includes large domestic market, rising per capita income, development of sufficient
industrial infrastructure and above all, perfect industrial relations. The following points
need through examination which may help create better investment climate in India
and lure the foreign investors to come forward:
• The existing policy of the government is not clear. The most important task
before the government is to come out with a clear and bolder policy
regarding foreign investment and safeguard of interests of foreign investors.
Foreign companies find the policy and procedural environment in India
confusing and complex. For example – Motorola even shifted some of the
projects originally earmarked for India to china, where the government
attitude is much friendlier.
• One of the major handicaps in attracting foreign investors to India is the poor
and inadequate industrial infrastructure, which should be taken care of.
Many foreign investors have turned their faces for lack of adequate
infrastructure.
Trends of Foreign Capital...
9. 75
• Poor industrial relations create obstacle in the path of inflow of foreign
investment in India. So efforts should be made to develop healthy industrial
relations to attract foreign investment.
• Another important area which needs immediate attention of the
government is to guard against the inefficiency and indiscipline in
capital markets of the economy and strengthen the financial system as
a whole. It should ensure that events like the stock exchange scam are not
repeated.
• Any foreign investor is found obviously interested in a stable political
government, where he wants to invest. Political stability has a far reaching
implication for the industrial development of a nation and simultaneously it
creates a sense of safety and security in the mind of the investor. India needs
to feel concern about it, if it is really interested in economic development
through foreign investment.
References
• India's Economic policy Preparing for the twenty first century – Bimal Jalan
• Foreign private investment in India in the nineties Paper submitted by S.P.
Gupta
• Economic Development and Planning in India
• I.C. Dhingra and Garg
• Reserve Bank of India bulletin (2012-13)
• Reserve bank of India bulletin (2013): “India's Foreign Liabilities and Assets
as on March 31, 2013.
• Economic survey (2002-2013)
• OECD International Direct Investment Data Base
• The Economic Times, July 09, 2014
• RBI, (Foreign Exchange Department) Central Office, Mumbai
• http://www.indianbusiness.nic.in
• http://dipp.nic.in
• http://www.rbi.org.in
Kamna Dhawan & Shikha Jain