This document discusses foreign direct investment (FDI) in India. It outlines the sectors that permit various levels of FDI, from 100% FDI allowed in hotels and tourism to 26% allowed in insurance and 49% in banking. FDI provides benefits like increased employment and technology transfer but also risks like foreign company dominance. The Indian government's policies aim to attract more FDI through automatic approval routes and investment boards while restricting sectors like gambling. Overall FDI is presented as important for India's economic growth and development.

1. FOREIGN DIRECT INVESTMENT IN INDIA

2. INTRODUCTIONLong term participation by a country into another countrythrough participation in management , joint venture ,transfer of technology and expertiseIt is a measure of foreign ownership of productive assets like factories and land &minesIncreasing foreign direct investment can be used as one measure of economic globalisationDespite providing foreign funds and capitals ;it has also been generating employment opportunities

3. SECTORS OF F.D.I IN INDIA100% F.D.I is permissible in hotel and tourism industryHotel industry includes restaurants, beach resorts, accommodation and other food facilities to touristsTourism industry includes travel agencies, tourist transport agencies, units providing facilities for culture ,adventure and wild life to touristsMedical tourism, in India, has emerged as a huge money generator India has been promoting its medical tourism to provide healthcare facilities to tourists that has estimated to reach US$2 billion by 2012

4. continuedUp to 100% F.D.I is allowed in projects related to electricity generation, transmission , and distribution other than atomic reactor power plantsF.D.I up to 100% is permitted in the manufacturing of drugs and pharmaceutical provided it does not involves recombinant D.N.A technologyF.D.I up to 100% is permitted in projects of construction and maintenance of roads highways, vehicular bridges, toll roads, tunnels, ports and harbors.

5. continuedF.D.I up to 26% is permitted in insurance sector provided adherence to guidelines of INSURANCE REGULATORY & DEVELOPMENT AUTHORITYFor trading companies 100% F.D.I is allowed for exports ,bulk imports and carry wholesale tradingF.D.I up to 49% is allowed in banking sector provided adherence to guidelines of Reserve Bank of IndiaFor basic ,cellular ,value added services and mobile personal communication by satellite, 49% F.D.I is allowed.

6. F.D.I IN EDUCATIONUnder this foreign universities are allowed to set-up their infrastructure and provide faculties of international standardsF.D.I in education would prevent going of Indian students to foreign countries for higher educationIt would encourage competition with domestic universities . Hence domestic universities would make efforts to match the level of foreign universities

7. POLICIES FOR FDI IN INDIA AUTOMATIC ROUTEIt does not require any prior approval either by government or reserve bank of India.The investors are only required regional office concerned of RBI within 30 days of receipt of inward remittances and submit the document within 30 days of issue of shares of foreign investor

8. GOVERNMENT APPROVALApproval of activities that are not under automatic routeIt requires approval of FOREIGN INVESTMENT PROMOTION BOARDPROHIBITION SECTORSIt includes gambling ,betting , atomic energy , agriculture and lottery business etcOTHER POLICIES ARE:Industrial licensing, general permission of R.B.I , small scale sector, locational restrictions and environmental clearence

9. WHY INDIA?India is world’s largest liberal democracy with sufficient natural resources India has got skilled labor forceIn India the rate of return on investment is highSecond largest group of software developerWorld’s fourth largest economy and second largest pharmaceutical industryIndia has been growing with 8% gross domestic product

10. CONTINUEDIndia has got an international stand to become the next permanent member to United Nation’s Security council India is an important member of SAARC , WTO, SAFTA and G-20

11. ADVANTAGESAttracting foreign direct investment has become an integral part of the economic development strategies for IndiaIt has opened a wide spectrum of opportunities in the trading of goods and services in India both in terms of import and exportIt has also generated employment opportunities through setting up of industrial units in all corner s of countryIt has also promoted introduction of modern advance technologyF.D.I in education has improved standard of education

12. DISADVANTAGESForeign companies usually have ability to dominate the market ; thus monopoly of foreign companies may occur Government ,sometimes ,in order to promote funds inflow ,may give some undue advantage to foreign companies Foreign companies makes difference between rural and urban India as they create products for small number of higher class of peopleIn education sector foreign universities won’t be able to form trust under Indian law which is the first to buy land to start an institution

13. FUTURE PROSPECTS Though due to global recession foreign investors are looking a bit gloomy but its future is brightGovernment is planning to increase the participation of F.D.I in construction businessF.D.I in education is in focus. Hence some European an british universities are showing keen interest Recently the biggest Foreign Direct Investment worth Rs55000 crore has been made with POSCO i.e Pohang Steel Company of south korea

14. CONCLUSIONConsidering foreign direct investment as an important measure of a country’s economic growth and development through introduction of foreign advance technology which is beneficial for both consumer and seller ,it must be promoted . As it is generating employment opportunities it is dealing with one of the most important issue of our country and in education sector providing international standard of education within the country , it is certainly a WIN-WIN situation for us

16. QUERIES?