The document discusses foreign direct investment (FDI) in various sectors of the Indian economy such as aviation, broadcasting, insurance, and retail. It notes that India has become one of the most attractive destinations for FDI due to its growing markets, liberalized trade policies, and developing technology and infrastructure sectors. However, increasing FDI caps in certain industries like retail has also faced strong protests over concerns about impact on local businesses and jobs.
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.