Downloaded 339 times
Uploaded byPeriasamy K
FDI in India - An Analysis
FDI in India has been increasing over the past few decades. [1] Developed countries received most FDI historically but developing countries like China and India have received higher amounts in recent years. [2] FDI provides benefits like economic growth, technology diffusion, employment opportunities and increases in domestic firm capabilities. [3] India's GDP growth increased dramatically after economic reforms in 1992 that coincided with rising FDI inflows.
More Related Content
Similar to FDI in India - An Analysis
FDI in India - An Analysis
- 1. FDI IN INDIA– AN ANALYSIS BY K.Periasamy, Chennai
- 2. 40 MAJOR ECONOMIES SHARE OF WORLD GDP Western Europe India 35 30 United States 15 20 25 Percentage China 10 Japan 5 India 0 0 1000 1500 1600 1 700 1820 1870 1913 1950 1973 1998 2005 Year
- 3. DEVELOPED COUNTRIES HAVERECEIVED MAXIMUM FDI NOTE : 1) Only in the last 10 years, Developing countries have received higher FDI. 2) China has been consistently receiving higher FDI for the past 20 years.
- 4. Economic Growth Linkages and spillover to Trade domestic firms Technology diffusion and Employment knowledge and skill levels transfer
- 5. • Log ofGDP = 4.12 + 0.466 Log of FDI 6.2 6.1 6 Log of GDP 5.9 5.8 5.7 5.6 5.5 5.4 5.3 5.2 2 2.5 3 3.5 4 Log of FDI
- 6. INDIA – YEARLYNET FDI INFLOWS 6000 5000 4000 US $ million 3000 2000 1000 0
- 7. INDIA – MAJORINVESTING COUNTRIES NOTE : 1) Mauritius is only the Route
- 8. INDIA – FDIINVESTMENT BY USA NOTE : 1) USA INVESTMENT IS NOT GREAT. BUT WE ALWAYS TALK ABOUT USA MNCs !
- 9. INDIA – SECTORWISEFDI Services Sector 3% 6% 4% 4% Computer Software & 6% hardware Telecommunications 10% Housing & real Estate 31% Construction Activities 11% Power Automobile Industry 12% Metallurgical Industries 13% Petroleum & Natural Gas NOTE : 1) REASONABLY GOOD DISTRIBUTION. 2) MORE FDI SAHLL BE ATTRACTED IN MANUFACTURING SECTOR
- 10. INDIA – CUMULATIVEINFLOW OF FDI UPTO 08-09 NOTE : 1) THE TOTAL AS ON 2009 WAS JUST 24.6 Bn USD
- 11. INDIA – CUMULATIVEINFLOW OF FDI 07-08 to 10-11
- 12. CHINA – CUMULATIVEINFLOW OF FDI NOTE : 1) THE TOTAL AS ON 2009 WAS CLOSE TO 100 Bn USD COMPARED TO JUST 24.6 Bn USD IN INDIA
- 13. CHINA – REGIONWISEFLOW OF FDI
- 14. INDIA – REGIONWISEFLOW OF FDI NOTE : 1) PROGRESSIVE STATES RECEIVE MORE FDI AND GROW MORE ! 2) THIS IS THE REALITY.
- 15. INDIA – GDPGROWTH NOTE : 1) DRAMATIC INCREASE AFTER 1992. IT COINCIDES WITH LIBERALISATION AND FLOW OF FDI.
- 16. INDIA – CHINACOMPARISON
- 17. INDIA – CHINACOMPARISON
- 18. FDI TREND –OUTLOWS WORLDWIDE
- 19. FDI TREND –INFLOWS WORLDWIDE NOTE : 1) STILL THE DEVELPED COUNTRIES RECEIVE THE MAXIMUM FDI 2) THERE IS NET OUTFLOW FROM G20 3) WE NEED TO REALISE THE IMPORTANCE OF FDI
- 20. THIS IS THEREALITY ! NOTE : 1) EVERY COUNTRY HAS GROWN AFTER OPENING UP OF THE ECONOMY 2) FDI FLOWS AFTER OPENING UP ONLY 3) IF WE HAD OPENED UP OUR ECONOMY IN THE SAME MANNER AS CHINA DID IN THE 90s, BY NOW, WE WOULD HAVE BEEN BETTER OFF THAN CHINA
- 21.