Foreign Direct Investment in India

1. ABDUL BASIM
ABHIRAJ B.S
ABHIRAG BAISIL
AISWARYA ROY
AKHILA G NAIR
AKSHAY GOPAN
MENTOR
MANU MOHAN
SOP A1
IN INDIA

2. CONTENTS
• STOCK EXCHANGE
• BSE SENSEX
• NSE NIFTY
• INTRODUCTION TO FDI
• WHY INDIA ?
• TYPES OF FDI
• ANALYSIS ON FDI
• GOVERNMENT INITIATIVES
• MERITS & DEMERITS
• CONCLUSION
• REFERENCE

4. STOCK EXCHANGE
• Stock Exchange:- A market in which securities are bought &
sold.
• Bombay Stock Exchange(BSE) :-an Indian stock
exchange located at Mumbai, established in 1875.
• National Stock Exchange(NSE) :-leading stock exchange
located in Mumbai, established in 1992.

5. BSE SENSEX AFTER DEMONETIZATION

6. NSE NIFTY AFTER DEMONETISATION

7. INTRODUCTION TO FDI
• Foreign Direct Investment (FDI) – an investment made by a
company in other country.
• Major monetary source for economic development in India.
• Economic liberalization starts from 1991 economic crisis.
• Manmohan Singh and P V Narasimha Rao brought FDI to
India.
• India is one of the top destination for FDI.

8. WHY INDIA ?
• Liberal, Largest democratic, Political Stability
• Skilled and competitive labour force.
• Highest rates of return on investment.
• Second largest group of software developers after the U.S.
• World’s seventh largest economy.

10. Based on Direction:-
• Inward FDI : Foreign capital is invested in local resources.
• Outward FDI : When local capital is invested in foreign resources.

11. Based on Target:-
• Green Field Investment : Investment on an area were no
previous facilities exist.
• Merger and Acquisition : It is a corporate strategy.
Eg : Tata Corus
• Horizontal FDI : Investment in the same industry abroad as a
firm operates in at home.
Eg : TATA STEEL - CORUS STEEL
• Vertical FDI : Industry provides inputs for or sells output from
a firm’s domestic production processes.

12. Based on Motive:-
• Resource Seeking : Investment aim to get production factor supplies at low
cost.
• Market Seeking: Direct presents in foreign market to quickly develop sales
revenue.
• Efficiency Seeking : Investing done to take advantage of a lower cost
structure.
• Strategic Asset Seeking : Investment lead to increase self competitiveness.

13. ANALYSIS ON FDI :
Country Wise:-

14. WHY MAURITIUS ?
• Investors focus on Mauritius route to invest in India.
• Capital gains can only be taxed in Mauritius.
• 40% of FDI to India came from Mauritius.
• TMI Mauritius Ltd, Oracle Global Mauritius Ltd etc are the
top investors.

15. Sector Wise:-

16. GOVERNMENT INITIATIVES:-
• DIPP approve 9 FDI’s worth 5000 cr.
• India & Japan has joined hands for infrastructure
development in north east.
• CBDT has excempted FDI from the long term capital gain
tax.
• Introduction of unified access licensing for telecom services
on a pan India basis.

17. MERITS & DEMERITS
• To achieve expected growth in India’s GDP.
• Employment & skill level.
• Technology diffusion & knowledge transfer.
• Linkage & spillovers to domestic firms.
• Trade.
MERITS :-

18. DEMERITS :-
• Economically backward section is affected.
• Defense of the country can be affected.
• Taking of revenue & market share by the big foreign giants.
• Difference in language & culture.

19. CONCLUSION
• FDI incorporates an important role within the economic progression and development
of India.
• The invasion of FDI in various sectors from April 2000 to March 2015 earned
economic progression.
• Investors shows attention towards service and software field, while less interest
towards other fields.

20. • India still has a heavy regulation burden among other countries.
• FDI provides competition to the local industries which make them competent.
Hence product quality improvement.
• Overseas investors clearly see the potential for attractive returns from
investment in India.
• FDI & market is high, but GDP is not up to the mark.

21. REFERENCE :-
• International Journal of Innovative Research and development
• www.ibef.org
• m.economictimes.com
• www.innovativepublication.com
• Wikipedia- https://en.wikipedia.org

22. POP UP

23. OPEN FORUM

24. THANK YOU