FDI refers to foreign direct investment in a country. There are several types of FDI. India is attractive for FDI due to its large market, expectations of further economic liberalization, and improvements in domestic institutions. Key sectors that received FDI in India from April 2012-2013 included services, pharmaceuticals, construction, and automobiles. While FDI provides several advantages like job creation and access to global markets, it also poses some disadvantages such as crowding out of local industries. The document discusses FDI in various sectors like retail, insurance, aviation and others that are allowed and prohibited for FDI in India. It outlines the benefits and concerns of FDI in the retail sector. Overall, the team's view is

1. FDI
(foreign direct investment)
Team Members:
Sumit Kumar 12bit0130
Divyansh Sharma 12bce0088
M.Aravind

2. MEANING OF FDI
 FDI is 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.

3.  Horizontal FDI
 Platform FDI
 Vertical FDI
TYPES OF FDI

4. REASONS FOR INDIA BEING ATTRACTIVE FOR FDI
 Market Share
 Expectations of further liberalization of capital
movement internationally
 Rationalization of Economic Policies
 Improvement in Domestic Financial Institutions and
Banks
 Good manufacturing and outsourcing Hub

5. KEY STATIstiCS
o India received FDI worth US $1.47 billion in july 2012 with
cumulative inflow for April 2012-13 Stood at $5.9billion.
o The sector which attracted huge FDI inflows during the April 2012-
13 are service $1.65 million pharmaticals $428 million, construction
$421 million, metallurgical industries (US$ 334 million), power
(US$ 237 million) and automobile (US$ 234 million)

6. FACTS
 At least 10% shares of company need to quality as FDI.
 Mauritian has been the largest direct investor.
 New Delhi And Mumbai are two major cities where FDI
inflows is heavily concentrated.
 Retailing is the single largest component of the services
sector in terms of contribution of GDP.

7.  Inflow of equipment and technology
 Competitive advantages and innovation
 Finance resource for expansive
 Employment generation
 Contribution to export growth
 Improved consumer welfare through reduced cost,
wider choice & improved quality.
 Provide access to global markets for Indian
producer.
Advantages of FDI

8. Disadvantages of FDI
 Crowing of local industry
 Conflict of laws
 Loss of control
 Effect on notional environment
 Effect on culture

9. FDI IN DIFFERENT SECTOR
 FDI in Retail
 FDI in insurance
 FDI in Aviation
 FDI in railway
 FDI in defence
 FDI in education
 FDI in broadcast

10. Sectors Prohibited for Foreign Direct Investment
 Atomic Energy
 Lottery Business including Government /private,lottery,
online lotteries, etc.
 Gambling and Betting including casinos etc.
 Business of chit fund
 Nidhi company

11.  Cabinet clears 100% FDI in Railways infrastructure, 49% in
defence.FDICa

12. FDI in Retail Sectors

14. Advantages of FDI in retail
 Growth in Economy
 Job Opportunities
 Benefits to Farmers
 Benefits to consumers
 Availability of new technology
 Cheaper Production facilities
 FDI opens up a new avenue for Franchising

15. DISADVANTAGES OF FDI IN RETAIL
 Farmers will not get better prices
 Big Retail is one big cause of food inflation
 Big Retail kills small jobs
 Creating monopoly
 Increase in Real estate prices

16. FDI IN INSURANCE

17. six key benefits of Increased Foreign
Direct Investment Limit in Insurance
Sector
Increased Insurance Penetration
Level Playing Field
Increased Capital Inflow
Job Creation

18.  Favorable to the Pension Sector
 Consumer Friendly

19. FDI inflows to India
Categories:
 Inflows by country-wise
 Inflows by sector-wise
 Inflows by state-wise

21. ENTRY ROUTES FOR FDI INFLOWS
 Automatic Route - RBI
 Government Approval-FIPB

22. RECENT FACTS ON INFLOWS
 In 2013-14, FDI inflows in India were $24.29 billion against
$22.42 billion in 2012-13.
 Reserve Bank of India (RBI) reveals that Mauritius tops the list
of countries that contributes the highest quantum of Foreign
Direct Investment (FDI) equity inflows into the state.
 Mauritius pours highest FDI into Indian textile sector.
 In the period between fiscal years 2011-12 and 2013-14, the
Indian textile industry received FDI from Mauritius totalling to
$215.12 million

23. CONCLUSION
 In evey sector government has increase the FDI which
results in the economy growth and also increase in GDP.
 Weightage of Advantages over disadvantages is very
high.
 In my team members point of view FDI is good for
india.