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FDI in India
• The fast and steadily growing economy of
  India has made India one of the most famous
  and popular destinations in the whole world.

• Survey by the United Nations Conference on
  Trade and Development (UNCTAD)-
  India has been selected as “the second most
  preferable destination by investors”
Factors that attract foreigners to India
• India's ever-expanding markets
• liberalization of trade policies
• development in technology and
  telecommunication
• loosening of diverse foreign investment
  restrictions
FDI in aviation
• India is currently the ninth largest aviation market
• India's Aviation sector and its domestic aviation market both
  have been growing fast at high rates in the recent years
• Showed a boom after the liberalization on foreign
  investment rules in the aviation sector of India

• the number of national and international players and
  investors, and number of aircrafts (passenger, cargo, charter,
  etc) increased

• 15 scheduled operators operating nearly 500 aircrafts which
  connect the nation and the world
FDI in broadcasting sector
• Cabinet Committee on Economic Affairs (CCEA)
  raised the FDI cap from 49% to 74% in many fields
  of the Broadcasting sector in September 2012

    Applied to-
•   Teleports
•   Direct-to Home (DTH)
•   Head-end in the Sky (HITS)
•   Cable Networks
•   Mobile TVs
FDI in insurance sector

• the existing limit is 26%
• has been submitted to the cabinet for proper
  approval in the quickest possible period
• A proposal for raising FDI threshold to 49%
  is under the consideration of Government
• 50 life insurance and general insurance
  companies are active in the insurance sector of
  India.
FDI in Retail

• Central government passed the bill regarding FDI in retail
  sector, both in Lok Sabha and in in the Rajya Sabha on
  Friday.
• Strong protests are going on still…….
• WHY??
• WHY????
Advantages of FDI
• Infrastructure development.

• Intermediaries dominate the value chain can
  be avoided .

• Proper Public Distribution System (“PDS”)
• Global Reach.
Challenges in FDI
 Current Independent Stores will be compelled
  to close:
   This will lead to massive job loss as most of the
  operations in big stores like Walmart are highly
  automated requiring less work force.

 Big players can knock-out competition: they can
  afford to lower prices in initial stages, become
  monopoly and then raise price later.
 India does not need foreign retailers: they can
  satisfy the whole domestic demand.
Opportunities
• There will be more organization in the sector

• Healthy Competition will be boosted and there
  will be a check on the prices (inflation)

• Create transparency in the system

• Intermediaries will be evicted, so the farmers
  and producers directly get the benefit.

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FDI in India: Growing Markets & Liberalization Attract Investors

  • 1.
  • 2. FDI in India • The fast and steadily growing economy of India has made India one of the most famous and popular destinations in the whole world. • Survey by the United Nations Conference on Trade and Development (UNCTAD)- India has been selected as “the second most preferable destination by investors”
  • 3. Factors that attract foreigners to India • India's ever-expanding markets • liberalization of trade policies • development in technology and telecommunication • loosening of diverse foreign investment restrictions
  • 4. FDI in aviation • India is currently the ninth largest aviation market • India's Aviation sector and its domestic aviation market both have been growing fast at high rates in the recent years • Showed a boom after the liberalization on foreign investment rules in the aviation sector of India • the number of national and international players and investors, and number of aircrafts (passenger, cargo, charter, etc) increased • 15 scheduled operators operating nearly 500 aircrafts which connect the nation and the world
  • 5. FDI in broadcasting sector • Cabinet Committee on Economic Affairs (CCEA) raised the FDI cap from 49% to 74% in many fields of the Broadcasting sector in September 2012 Applied to- • Teleports • Direct-to Home (DTH) • Head-end in the Sky (HITS) • Cable Networks • Mobile TVs
  • 6. FDI in insurance sector • the existing limit is 26% • has been submitted to the cabinet for proper approval in the quickest possible period • A proposal for raising FDI threshold to 49% is under the consideration of Government • 50 life insurance and general insurance companies are active in the insurance sector of India.
  • 7. FDI in Retail • Central government passed the bill regarding FDI in retail sector, both in Lok Sabha and in in the Rajya Sabha on Friday. • Strong protests are going on still……. • WHY?? • WHY????
  • 8. Advantages of FDI • Infrastructure development. • Intermediaries dominate the value chain can be avoided . • Proper Public Distribution System (“PDS”) • Global Reach.
  • 9. Challenges in FDI  Current Independent Stores will be compelled to close: This will lead to massive job loss as most of the operations in big stores like Walmart are highly automated requiring less work force.  Big players can knock-out competition: they can afford to lower prices in initial stages, become monopoly and then raise price later.  India does not need foreign retailers: they can satisfy the whole domestic demand.
  • 10. Opportunities • There will be more organization in the sector • Healthy Competition will be boosted and there will be a check on the prices (inflation) • Create transparency in the system • Intermediaries will be evicted, so the farmers and producers directly get the benefit.