Foreign direct investment (FDI) refers to direct investment into production in another country. There are three main types of FDI: horizontal, vertical, and platform. FDI can occur through automatic or government routes in India. FDI in retail is permitted up to 49% for single brand and up to 51% for multi-brand under government route. FDI in pharmaceuticals is permitted up to 100% under automatic route. While FDI provides benefits like jobs, technology, and access to markets, it also poses risks such as increased competition and dependence. Overall, the benefits of FDI for India outweigh the disadvantages.

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PRESENTATION
ON
FOREIGN DIRECTFOREIGN DIRECT
INVESTMENTINVESTMENT
IN INDIAIN INDIA
TOILED BY
MUZAHIDUR RAHMAN MIRDHA
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3. MEANING OF FDI
FDI means direct investment into production in a
country by a company located in another country either
by buying a company in the target country or by
expanding operations of an existing business in that
country.
FDI offers an exclusive opportunity to enter into the
global business, new markets and marketing channels,
elusive access to new technology and expertise.
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4. TYPES OF FDI
HORIZONTAL FDI
It is the type of FDI when foreign firm establishes its operation into host
country in the same ways of its home country with all actives and
procedures.
VERTICAL FDI
It is the form of FDI when a firm is investing into host country to either
move upward or downward in terms of operations, production and so on.
PLATFORM FDI
It is the form of FDI when a firm is investing into the host country to
make the export from host country to some other countries.
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5. TYPES OF ROUTE
THERE ARE TWO TYPES OF ROUTE OF FDI
 AUTOMATIC ROUTE
FDI is permitted under automatic route does not require any prior
approval either by the Government or RBI. The investors are only
required to notify the Regional office concerned of RBI.
 GOVERNMENT ROUTE
Which activities are not covered under the automatic route require prior
Government approval. Such proposals are considered by a Government
body called Foreign Investment Promotion Board (FIPB).
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6. FDI IN RETAIL SECTOR
 SINGLE BRAND RETAIL TRADING
Automatic Route:- Up to 49%
Government Route:- 50 to 100%
 MULTI BRAND RETAIL TRADING
Automatic Route is not permitted
Government Route:- Up to 51%
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7. FDI BOON IN RETAIL
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 Inflow of investments and funds
 Generates more employment
 Increased local sourcing
 Provide better value to end consumers
 Growth of infrastructure
 Cost reduction
 Improvement in supply chain and warehousing

8. FDI BANE IN RETAIL
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 Cutthroat competition
 Creating monopoly
 Increase in real estate prices

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FDI IN PHARMACEUTICAL
SECTOR
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 FDI up to 100% is permitted under the automatic route for manufacture
of drugs and Pharma products
 FDI up to 74% in case of bulk drugs, their intermediates
pharmaceuticals and formulations would be covered under automatic route
 FDI above 74% for manufacture of bulk drugs would be covered under
Government route on case to case basis

10. FDI BOON IN PHARMA
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 Remarkable growth in technology and equipments
 Economic growth
 Employment and skills
 Access to international markets
 Economies of scale
 Access to large pool of highly trained scientists
 Strong marketing and distribution network
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11. FDI BANE IN PHARMA
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 Inflation may increase
 Threat to the domestic start up
 Increases dependability due to 100% FDI which turns into
risk
 It may influence the Government
 Threat to environmental safety

12.  Mauritius has been the largest direct investor of
India
 New Delhi and Mumbai are two major cities where
FDI inflows is heavily concentrated
 Retail is the single largest component in terms of
contribution of GDP
FACTS ABOUT FDI
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13.  Inflow of equipment and technology
 Competitive advantages and innovation
 Employment generation
 Improved consumer welfare
 Contribution to export growth
 Provide access to global market
ADVANTAGES OF FDI
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14.  Crowing of local industry
 Conflict of laws
 Loss of control
 Effect on national environment
 Effect on culture
DISADVANTAGES OF FDI
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15.  Stable democratic environment
 Large and growing market
 Cost-effective and highly skilled labour
 Abundance of natural resources
 Well-established legal system with independent
judiciary
 Fastest growing economy
 Large English speaking population
ADVANTAGES OF INDIA
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16. FDI PROHIBITTED
 Lottery Business including Government/private lottery,
online lotteries
 Gambling and Betting including casinos
 Chit funds
 Nidhi company
 Real Estate Business or Construction of Farm Houses
 Manufacturing of cigars, cheroots, cigarillos and
cigarettes
 Atomic Energy and Railway operations
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17. Consider these all aspect, finally I conclude that FDI
more boon than bane because foreign direct investment
has more advantages than its disadvantages.
CONCLUSION
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