Foreign Direct Investment, FDI, FDI Inflow, Multi Brand Retailing, Constitution of India vs Business, Right to Business, Budget 2014
budget 2014, constitution of india vs business, fdi, fdi inflow, foreign direct investment, multi brand retailing, right to business
Foreign Direct Investment (FDI) in India has grown significantly in recent years. The government's consolidated FDI policy aims to promote FDI through a transparent and predictable framework. Key factors that attract foreign investors to India include its large and growing market, availability of skilled labor, and stable democratic environment. While cases like UBS fraud and the Vodafone tax dispute have increased uncertainty, India remains an attractive destination for FDI due to its strong economic fundamentals and future growth prospects. Recommendations to further encourage FDI include liberalizing caps, streamlining approvals, and maintaining a balance between domestic and foreign companies.
Foreign direct investment (FDI) in India has increased substantially since economic liberalization began in 1991. FDI is regulated by the Reserve Bank of India and the Foreign Investment Promotion Board, and flows primarily into sectors like services, construction, and automotive manufacturing. While FDI brings benefits like new jobs, technology, and financial resources, it also poses risks such as crowding out local industries. India has gradually opened more sectors to higher levels of foreign ownership over time, including recently allowing 100% FDI in single-brand retail and raising limits in insurance and telecom. Mauritius is currently the largest source of FDI for India.
FDI refers to investment made by a company or individual in one country into business interests located in another country, in a way that allows for control of the foreign entity. It typically takes the form of establishing a new subsidiary, acquiring part of an existing foreign company, or starting a joint venture. Foreign direct investment brings investment capital into a country and can facilitate the transfer of technology, but it may also allow multinational corporations to undermine some aspects of economic autonomy and control. In 1991, India introduced foreign investment reforms under the Foreign Exchange Management Act to liberalize and encourage FDI. Over time, India has gradually increased caps and allowed higher levels of foreign ownership across various sectors to attract more international investment.
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from foreign portfolio investment by a notion of direct control.
This document discusses foreign direct investment (FDI) in India, including what FDI is, reasons for FDI, India's history with FDI, sectors that allow FDI and in what amounts, issues and challenges with FDI in India, recent policy measures to increase FDI, and how FDI relates to India's "Make in India" campaign. It provides statistics on top investing countries in India and sectors that allow FDI from 0-100%. The conclusion states that India must address FDI issues with priority to liberalize policies and attract investment to support growth.
The Union Cabinet approved raising the FDI cap in private insurance companies from 26% to 49%. This is expected to result in $8-9 billion in capital infusions into the Indian insurance industry over the next 5 years. The increased FDI limit will act as a catalyst for industry consolidation. However, some foreign investors may delay large investments due to ambiguities around issues like management control and approval processes. The changes now need to be passed by Parliament.
Foreign Direct Investment involves a firm directly investing in facilities abroad to produce or market goods overseas. There are two main forms - acquisitions of existing foreign firms, or greenfield investments building new facilities. FDI can also take the form of wholly owned subsidiaries or joint ventures with local firms. It can be either horizontal, investing in the same industry abroad, or vertical with suppliers or customers. Motivations for horizontal FDI include reducing transportation costs or strategic behavior, while vertical FDI aims to overcome market imperfections or invest in specialized assets.
Foreign Direct Investment (FDI) in India has grown significantly in recent years. The government's consolidated FDI policy aims to promote FDI through a transparent and predictable framework. Key factors that attract foreign investors to India include its large and growing market, availability of skilled labor, and stable democratic environment. While cases like UBS fraud and the Vodafone tax dispute have increased uncertainty, India remains an attractive destination for FDI due to its strong economic fundamentals and future growth prospects. Recommendations to further encourage FDI include liberalizing caps, streamlining approvals, and maintaining a balance between domestic and foreign companies.
Foreign direct investment (FDI) in India has increased substantially since economic liberalization began in 1991. FDI is regulated by the Reserve Bank of India and the Foreign Investment Promotion Board, and flows primarily into sectors like services, construction, and automotive manufacturing. While FDI brings benefits like new jobs, technology, and financial resources, it also poses risks such as crowding out local industries. India has gradually opened more sectors to higher levels of foreign ownership over time, including recently allowing 100% FDI in single-brand retail and raising limits in insurance and telecom. Mauritius is currently the largest source of FDI for India.
FDI refers to investment made by a company or individual in one country into business interests located in another country, in a way that allows for control of the foreign entity. It typically takes the form of establishing a new subsidiary, acquiring part of an existing foreign company, or starting a joint venture. Foreign direct investment brings investment capital into a country and can facilitate the transfer of technology, but it may also allow multinational corporations to undermine some aspects of economic autonomy and control. In 1991, India introduced foreign investment reforms under the Foreign Exchange Management Act to liberalize and encourage FDI. Over time, India has gradually increased caps and allowed higher levels of foreign ownership across various sectors to attract more international investment.
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from foreign portfolio investment by a notion of direct control.
This document discusses foreign direct investment (FDI) in India, including what FDI is, reasons for FDI, India's history with FDI, sectors that allow FDI and in what amounts, issues and challenges with FDI in India, recent policy measures to increase FDI, and how FDI relates to India's "Make in India" campaign. It provides statistics on top investing countries in India and sectors that allow FDI from 0-100%. The conclusion states that India must address FDI issues with priority to liberalize policies and attract investment to support growth.
The Union Cabinet approved raising the FDI cap in private insurance companies from 26% to 49%. This is expected to result in $8-9 billion in capital infusions into the Indian insurance industry over the next 5 years. The increased FDI limit will act as a catalyst for industry consolidation. However, some foreign investors may delay large investments due to ambiguities around issues like management control and approval processes. The changes now need to be passed by Parliament.
Foreign Direct Investment involves a firm directly investing in facilities abroad to produce or market goods overseas. There are two main forms - acquisitions of existing foreign firms, or greenfield investments building new facilities. FDI can also take the form of wholly owned subsidiaries or joint ventures with local firms. It can be either horizontal, investing in the same industry abroad, or vertical with suppliers or customers. Motivations for horizontal FDI include reducing transportation costs or strategic behavior, while vertical FDI aims to overcome market imperfections or invest in specialized assets.
This document provides an overview of foreign direct investment (FDI) in Brunei Darussalam. It defines FDI and describes the different types, including greenfield investment, horizontal FDI, and backward/forward vertical FDI. It also outlines the main motivations for FDI, such as being resource-seeking, market-seeking, or strategic-asset seeking. The document discusses the importance of FDI for economic growth and development as well as some barriers. It then provides examples of how Brunei is working to attract more FDI through improving infrastructure, providing incentives, and developing special economic zones. Finally, it summarizes recent news articles about land zones and incentives that could further boost FDI in Brunei.
Foreign direct investment (FDI) in India began increasing in the early 1990s after economic liberalization. FDI brings foreign capital into the country and helps improve India's foreign exchange reserves and reduce its external debt. While FDI has advantages like economic growth and job creation, it also faces challenges like bureaucratic hurdles and lack of infrastructure in India that discourage investment at times. The government has implemented reforms to increase FDI by allowing up to 100% foreign ownership in many sectors.
Foreign direct investment (FDI) occurs when a firm invests directly in new facilities in a foreign country. FDI is undertaken to take advantage of lower costs for resources unavailable in the home country. The firm maintains significant control over the foreign operation and can affect managerial decisions. There are several types of FDI including inward FDI into a country and outward FDI from a country. India allows up to 100% FDI under an automatic route in most sectors to encourage economic growth and development.
The document discusses foreign direct investment (FDI) in India. It defines FDI as direct investment by individuals or companies of one country into business operations in another country. The document outlines benefits of FDI such as technology transfer and increased productivity. However, it also notes drawbacks like local firms losing business. It provides data on top investing countries in India and sectors that saw success with FDI, like telecommunications. The document concludes by discussing the debate around allowing FDI in India's retail sector.
The document discusses foreign direct investment (FDI), including its definition, types, factors that encourage it, modes, direction, and India as an investment destination. It provides an overview of FDI and outlines the approval process and sector-wise policies in India. Key advantages include infrastructure development and technology transfer, while costs can include impacts on domestic producers and natural resources. Political ideology also influences views on FDI.
Foreign direct investment can take the form of greenfield investments, mergers and acquisitions, or joint ventures. FDI brings benefits like job creation, infrastructure development, and access to new technologies and skills, but it also increases competition that can negatively impact domestic firms. The effects of FDI depend on factors like the capabilities and policies of the host country. While FDI can spur productivity and wage gains, these spillovers are not guaranteed, and much depends on the absorptive capacity of domestic firms and linkages between foreign and local businesses. Overall, FDI is an important driver of economic growth when countries can maximize its benefits and minimize its risks.
Foreign direct investment (FDI) in India has grown significantly and provides several benefits to the country's economy. India offers incentives to attract more FDI, which contributes capital formation and brings skills and technology that spill over to domestic enterprises. While FDI boosts economic growth, some sectors have restrictions and FDI is routed through countries like Mauritius to take advantage of tax treaties. Both advantages like job creation and technology transfer, and disadvantages like inflation must be considered in policies regarding FDI and globalization.
The document discusses foreign direct investment (FDI), including definitions, types of FDI, methods of foreign investors participating in enterprises in host countries, incentives for FDI, importance of FDI, FDI in India, sectors and limits of FDI in India, and difficulties in limiting FDI. FDI is defined as investment made by a company or entity located in one country into business interests located in another country and can involve mergers and acquisitions or building new facilities.
This document provides information on foreign direct investment in India. It discusses India's liberal foreign investment policies and approval procedures. Under the automatic route, foreign direct investment up to certain limits in many sectors does not require prior government or central bank approval. For investments beyond these limits or in restricted sectors, approval must be sought from the Foreign Investment Promotion Board. The document outlines the sectors and limits permitted for foreign investment in India.
This document defines foreign direct investment and outlines some of the main theories, forms, strategies, and costs/benefits associated with FDI. It defines FDI as long-term investments involving control or influence over management. The key theories discussed are the MacDougall-Kemp hypothesis of capital moving from abundant to scarce economies, and industrial organization and location-specific theories. The main forms are greenfield investment, mergers and acquisitions, and brownfield investment. Strategies include firm-specific advantages and lowering costs. Benefits are factors of production, economic growth, and balance of payments, while costs include cultural influence and resource overuse.
The document discusses FDI in India, specifically in retail. It provides background on FDI and explains that the cabinet approved 51% FDI in multi-brand retail and 100% FDI in single-brand retail. While farmers may benefit, small traders argue they cannot withstand competition. The document also discusses debates around the potential positives, like improved supply chains, and negatives, like displacement of small shops. It provides an example of single-brand retail rules for Ikea and conditions around local sourcing norms.
The document discusses India as an attractive investment destination for foreign direct investment. It notes that India has pursued economic reforms to liberalize and open its economy. Key points highlighted include India being the second largest emerging market, having political stability and consensus on reforms, and offering a large skilled workforce and competitive advantage for long-term growth. Several studies are cited finding India a promising place for investment in sectors like infrastructure, telecom, and manufacturing.
Foreign direct investment (FDI) involves a company from one country making a physical investment into building or acquiring assets in another country, such as by establishing a factory or purchasing a company. The document discusses various types of FDI, incentives for attracting FDI, and its importance and impact. It also provides examples of FDI statistics and trends in countries such as China, Africa, and European nations. While FDI can spur economic growth, increase skills and technology transfers, it also introduces risks such as political instability and crowding out of local firms.
Foreign direct investment (FDI) in India has steadily increased since economic liberalization began in 1991. The government has consistently eased regulations and opened new sectors to FDI to make India a more attractive investment destination and accelerate foreign investment. Major sectors that see FDI include infrastructure, automobiles, pharmaceuticals, services, railways, textiles, airlines, and chemicals. Investors can be individuals, companies, foreign institutional investors. FDI can follow the automatic or approval route depending on the sector and level of foreign ownership.
Foreign direct investment (FDI) occurs when a firm directly invests in facilities in another country. FDI can be for production, marketing, services, R&D, or accessing raw materials. A firm engaging in FDI becomes a multinational enterprise. Key issues around FDI include why firms choose it over alternatives, what makes locations attractive, and the costs and benefits from the perspective of host and source countries. While FDI can benefit countries through jobs and investment, it also poses risks like loss of economic independence. Governments establish policies to restrict or encourage FDI based on these considerations. Overall, the document discusses the concept of FDI, factors influencing it, and perspectives of different stakeholders.
Pawan Kawan presented on foreign direct investment in India's retail sector. He discussed that FDI involves international investment and production. India has been the second largest FDI destination after China from 2010-2012. The retail sector accounts for 14-15% of India's GDP and is split between organized and unorganized markets. Recently, the Indian government allowed up to 51% FDI in multi-brand retail. FDI in retail is expected to benefit the Indian economy, create jobs, help farmers, and provide advantages to consumers through more choice and variety of products.
Foreign direct investment (FDI) in India has played an important role in the development of the Indian economy. FDI in India has - in a lot of ways - enabled India to achieve a certain degree of financial stability, growth and development. This money has allowed India to focus on the areas that may have needed economic attention, and address the various problems that continue to challenge the country.
This document provides an overview of foreign direct investment (FDI) in India. It defines FDI as investment made by an entity in an enterprise located in a different country, where the investor obtains influence or control. It outlines the two routes for FDI in India - direct and government - and the roles of the Reserve Bank of India and Foreign Investment Promotion Board in regulating FDI. It discusses advantages like technology transfer and disadvantages like crowding out local industry. It provides statistics on top investing countries and sectors for FDI in India. Finally, it explains the implications of allowing 51% FDI in multi-brand retail.
FDI in the Indian pharmaceutical industry has grown significantly in recent years. The government has undertaken initiatives like tax reductions for R&D spending to encourage growth. While India has a strong manufacturing base and skilled workforce, it lacks investment in research. FDI allows foreign companies to set up manufacturing facilities through greenfield investments or purchase existing plants through brownfield investments. Joint ventures also provide opportunities for technology transfer and skills development. Mauritius is a major source of FDI in the Indian pharmaceutical sector.
The document outlines India's foreign direct investment policy framework and the various regulations around FDI. It discusses the government body that regulates FDI policy, the different routes for FDI approval, and the sectors that allow varying levels of foreign investment either through automatic approval or via government permission. It also summarizes some of the recent changes made by the Modi government to liberalize FDI limits in certain key sectors like defence and railways.
The document discusses foreign direct investment (FDI) in India. It defines FDI and explains the different forms it can take, such as joint ventures and wholly owned subsidiaries. It outlines the approval processes for FDI through the automatic route, FIPB route and CCFI route. It also discusses key sectors that attract FDI in India like airports, telecom, insurance, mining, petroleum, banking and infrastructure. The advantages of FDI for India include job creation, technology transfer, and capital investment.
This document provides an overview of foreign direct investment (FDI) in Brunei Darussalam. It defines FDI and describes the different types, including greenfield investment, horizontal FDI, and backward/forward vertical FDI. It also outlines the main motivations for FDI, such as being resource-seeking, market-seeking, or strategic-asset seeking. The document discusses the importance of FDI for economic growth and development as well as some barriers. It then provides examples of how Brunei is working to attract more FDI through improving infrastructure, providing incentives, and developing special economic zones. Finally, it summarizes recent news articles about land zones and incentives that could further boost FDI in Brunei.
Foreign direct investment (FDI) in India began increasing in the early 1990s after economic liberalization. FDI brings foreign capital into the country and helps improve India's foreign exchange reserves and reduce its external debt. While FDI has advantages like economic growth and job creation, it also faces challenges like bureaucratic hurdles and lack of infrastructure in India that discourage investment at times. The government has implemented reforms to increase FDI by allowing up to 100% foreign ownership in many sectors.
Foreign direct investment (FDI) occurs when a firm invests directly in new facilities in a foreign country. FDI is undertaken to take advantage of lower costs for resources unavailable in the home country. The firm maintains significant control over the foreign operation and can affect managerial decisions. There are several types of FDI including inward FDI into a country and outward FDI from a country. India allows up to 100% FDI under an automatic route in most sectors to encourage economic growth and development.
The document discusses foreign direct investment (FDI) in India. It defines FDI as direct investment by individuals or companies of one country into business operations in another country. The document outlines benefits of FDI such as technology transfer and increased productivity. However, it also notes drawbacks like local firms losing business. It provides data on top investing countries in India and sectors that saw success with FDI, like telecommunications. The document concludes by discussing the debate around allowing FDI in India's retail sector.
The document discusses foreign direct investment (FDI), including its definition, types, factors that encourage it, modes, direction, and India as an investment destination. It provides an overview of FDI and outlines the approval process and sector-wise policies in India. Key advantages include infrastructure development and technology transfer, while costs can include impacts on domestic producers and natural resources. Political ideology also influences views on FDI.
Foreign direct investment can take the form of greenfield investments, mergers and acquisitions, or joint ventures. FDI brings benefits like job creation, infrastructure development, and access to new technologies and skills, but it also increases competition that can negatively impact domestic firms. The effects of FDI depend on factors like the capabilities and policies of the host country. While FDI can spur productivity and wage gains, these spillovers are not guaranteed, and much depends on the absorptive capacity of domestic firms and linkages between foreign and local businesses. Overall, FDI is an important driver of economic growth when countries can maximize its benefits and minimize its risks.
Foreign direct investment (FDI) in India has grown significantly and provides several benefits to the country's economy. India offers incentives to attract more FDI, which contributes capital formation and brings skills and technology that spill over to domestic enterprises. While FDI boosts economic growth, some sectors have restrictions and FDI is routed through countries like Mauritius to take advantage of tax treaties. Both advantages like job creation and technology transfer, and disadvantages like inflation must be considered in policies regarding FDI and globalization.
The document discusses foreign direct investment (FDI), including definitions, types of FDI, methods of foreign investors participating in enterprises in host countries, incentives for FDI, importance of FDI, FDI in India, sectors and limits of FDI in India, and difficulties in limiting FDI. FDI is defined as investment made by a company or entity located in one country into business interests located in another country and can involve mergers and acquisitions or building new facilities.
This document provides information on foreign direct investment in India. It discusses India's liberal foreign investment policies and approval procedures. Under the automatic route, foreign direct investment up to certain limits in many sectors does not require prior government or central bank approval. For investments beyond these limits or in restricted sectors, approval must be sought from the Foreign Investment Promotion Board. The document outlines the sectors and limits permitted for foreign investment in India.
This document defines foreign direct investment and outlines some of the main theories, forms, strategies, and costs/benefits associated with FDI. It defines FDI as long-term investments involving control or influence over management. The key theories discussed are the MacDougall-Kemp hypothesis of capital moving from abundant to scarce economies, and industrial organization and location-specific theories. The main forms are greenfield investment, mergers and acquisitions, and brownfield investment. Strategies include firm-specific advantages and lowering costs. Benefits are factors of production, economic growth, and balance of payments, while costs include cultural influence and resource overuse.
The document discusses FDI in India, specifically in retail. It provides background on FDI and explains that the cabinet approved 51% FDI in multi-brand retail and 100% FDI in single-brand retail. While farmers may benefit, small traders argue they cannot withstand competition. The document also discusses debates around the potential positives, like improved supply chains, and negatives, like displacement of small shops. It provides an example of single-brand retail rules for Ikea and conditions around local sourcing norms.
The document discusses India as an attractive investment destination for foreign direct investment. It notes that India has pursued economic reforms to liberalize and open its economy. Key points highlighted include India being the second largest emerging market, having political stability and consensus on reforms, and offering a large skilled workforce and competitive advantage for long-term growth. Several studies are cited finding India a promising place for investment in sectors like infrastructure, telecom, and manufacturing.
Foreign direct investment (FDI) involves a company from one country making a physical investment into building or acquiring assets in another country, such as by establishing a factory or purchasing a company. The document discusses various types of FDI, incentives for attracting FDI, and its importance and impact. It also provides examples of FDI statistics and trends in countries such as China, Africa, and European nations. While FDI can spur economic growth, increase skills and technology transfers, it also introduces risks such as political instability and crowding out of local firms.
Foreign direct investment (FDI) in India has steadily increased since economic liberalization began in 1991. The government has consistently eased regulations and opened new sectors to FDI to make India a more attractive investment destination and accelerate foreign investment. Major sectors that see FDI include infrastructure, automobiles, pharmaceuticals, services, railways, textiles, airlines, and chemicals. Investors can be individuals, companies, foreign institutional investors. FDI can follow the automatic or approval route depending on the sector and level of foreign ownership.
Foreign direct investment (FDI) occurs when a firm directly invests in facilities in another country. FDI can be for production, marketing, services, R&D, or accessing raw materials. A firm engaging in FDI becomes a multinational enterprise. Key issues around FDI include why firms choose it over alternatives, what makes locations attractive, and the costs and benefits from the perspective of host and source countries. While FDI can benefit countries through jobs and investment, it also poses risks like loss of economic independence. Governments establish policies to restrict or encourage FDI based on these considerations. Overall, the document discusses the concept of FDI, factors influencing it, and perspectives of different stakeholders.
Pawan Kawan presented on foreign direct investment in India's retail sector. He discussed that FDI involves international investment and production. India has been the second largest FDI destination after China from 2010-2012. The retail sector accounts for 14-15% of India's GDP and is split between organized and unorganized markets. Recently, the Indian government allowed up to 51% FDI in multi-brand retail. FDI in retail is expected to benefit the Indian economy, create jobs, help farmers, and provide advantages to consumers through more choice and variety of products.
Foreign direct investment (FDI) in India has played an important role in the development of the Indian economy. FDI in India has - in a lot of ways - enabled India to achieve a certain degree of financial stability, growth and development. This money has allowed India to focus on the areas that may have needed economic attention, and address the various problems that continue to challenge the country.
This document provides an overview of foreign direct investment (FDI) in India. It defines FDI as investment made by an entity in an enterprise located in a different country, where the investor obtains influence or control. It outlines the two routes for FDI in India - direct and government - and the roles of the Reserve Bank of India and Foreign Investment Promotion Board in regulating FDI. It discusses advantages like technology transfer and disadvantages like crowding out local industry. It provides statistics on top investing countries and sectors for FDI in India. Finally, it explains the implications of allowing 51% FDI in multi-brand retail.
FDI in the Indian pharmaceutical industry has grown significantly in recent years. The government has undertaken initiatives like tax reductions for R&D spending to encourage growth. While India has a strong manufacturing base and skilled workforce, it lacks investment in research. FDI allows foreign companies to set up manufacturing facilities through greenfield investments or purchase existing plants through brownfield investments. Joint ventures also provide opportunities for technology transfer and skills development. Mauritius is a major source of FDI in the Indian pharmaceutical sector.
The document outlines India's foreign direct investment policy framework and the various regulations around FDI. It discusses the government body that regulates FDI policy, the different routes for FDI approval, and the sectors that allow varying levels of foreign investment either through automatic approval or via government permission. It also summarizes some of the recent changes made by the Modi government to liberalize FDI limits in certain key sectors like defence and railways.
The document discusses foreign direct investment (FDI) in India. It defines FDI and explains the different forms it can take, such as joint ventures and wholly owned subsidiaries. It outlines the approval processes for FDI through the automatic route, FIPB route and CCFI route. It also discusses key sectors that attract FDI in India like airports, telecom, insurance, mining, petroleum, banking and infrastructure. The advantages of FDI for India include job creation, technology transfer, and capital investment.
The document discusses several theories of foreign direct investment (FDI):
- The product life cycle theory states that firms invest abroad in the maturity phase to export products and maintain monopoly power.
- The eclectic theory suggests that FDI occurs when ownership, location, and internalization advantages uniquely combine for a firm.
- Internalization theory holds that firms use FDI to balance markets and capture earnings across borders.
It also outlines the main routes for FDI approval in India - the automatic route through the Reserve Bank of India for certain equity levels and sectors, and the FIPB and CCFI routes for cases requiring government approval. Key sectors and countries contributing major FDI inflows to India are also highlighted.
Foreign direct investment (FDI) in India is regulated through several policies and procedures. FDI can enter India through the automatic route which allows up to 100% foreign ownership in most sectors without approval, or through the government approval route for sectors restricted or regulated. Key sectors that attract FDI include services, computer software and hardware, telecommunications, construction, power, and automobiles. Factors that help attract FDI include India's large skilled workforce, market potential, natural resources, and political and economic stability. The main government bodies that regulate FDI are the Foreign Investment Promotion Board and the Secretariat for Industrial Assistance.
Foreign direct investment (FDI) in India is regulated through several policies and procedures. FDI can enter India through the automatic route which allows up to 100% foreign ownership in most sectors without approval, or through the government approval route for sectors restricted or regulated. Key sectors that attract significant FDI include services, computer software and hardware, telecommunications, construction, power, and automobiles. The document outlines the various routes for FDI entry into India, sectoral guidelines, and procedures for establishing foreign business operations in India.
Factors affecting Foreign Investment in India.pptxRohitDutta45
Foreign direct investment (FDI) plays an important role in India's economy. The document discusses various forms and determinants of FDI, as well as how it benefits both host and home countries. It provides details on India's FDI policies from the pre-liberalization era to recent reforms, and sectors that allow varying levels of FDI, from prohibited to up to 100% under automatic or government route. In 2023, total FDI inflows to India decreased from the previous year, with Singapore and Mauritius being the largest investors and Maharashtra the top recipient state.
Unit v regulation and promotion of foreign tradeNaveen Kumar
The document discusses India's regulation and promotion of foreign trade and investments. It outlines key changes made in the 1990s and 2000s to liberalize and encourage foreign direct investment, including allowing up to 100% FDI in many industries and easing restrictions on foreign technology agreements. It also discusses the objectives of the Foreign Trade Act and India's EXIM policies in promoting exports and reducing trade barriers.
This document provides an overview of foreign direct investment (FDI) in India. It defines FDI and describes the different types including horizontal, vertical, and conglomerate investments. It outlines the FDI policy in India, including the sectors that allow 100% FDI through the automatic route versus those that require government approval. The document discusses the advantages and disadvantages of FDI for host countries. It also summarizes the major reforms to India's FDI policy since the 1990s that have liberalized and encouraged more foreign investment.
Foreign direct investment in India has grown robustly in recent years. Mauritius continues to be the largest source of FDI inflows into India, followed by the United States. The electrical equipment sector, including software, receives the most FDI, followed by services, telecommunications, and chemicals. Special economic zones have been successful in attracting foreign investment and fueling India's economic growth by offering various tax incentives to developers and business units.
The document provides an overview of foreign direct investment (FDI), including:
- Definitions and types of FDI such as greenfield investment, mergers and acquisitions, horizontal and vertical FDI.
- Advantages and disadvantages of FDI for host countries.
- The FDI procedure and approval routes in India, along with sector-specific FDI limits.
- Trends in FDI inflows to India over time and by source country, with the largest sources being Mauritius, Singapore, UK and US.
- Global FDI trends showing a rise in flows to developing countries like China and India.
This document discusses markets from different perspectives - as a physical place where buyers and sellers gather, as a collection of buyers and sellers of a particular product, and as customer groupings defined by businesses. It outlines the five basic types of markets and various ways markets can be defined, such as by need, product, demographic, or geographic factors. The key entry modes for foreign entities investing in India are also summarized, including setting up a subsidiary or joint venture, or establishing a liaison office, branch office, or project office. The levels of permitted foreign direct investment across various sectors under the automatic and government routes are also highlighted.
This document discusses foreign direct investment (FDI), multinational corporations, and international trade organizations. It provides definitions and organizational models for multinationals, including international and global models. It also outlines the merits and demerits of multinationals for host countries. Additionally, it discusses key international economic institutions like the IMF, World Bank, and WTO/GATT. It explains their roles in facilitating global trade and financing. Finally, it summarizes some major WTO agreements regarding intellectual property (TRIPS) and investment measures (TRIMS).
The document summarizes India's consolidated FDI policy framework, which integrates all prior FDI regulations into a single document for greater clarity and ease of understanding. Key points include:
- The Commerce Minister released the final consolidated FDI policy document.
- It rescinds all past press notes and provides a single platform for all FDI policy information.
- The document will be updated every 6 months to keep the framework current.
- Several issues like FDI in LLPs are still under discussion and will be added later.
1) Foreign direct investment (FDI) occurs when an investor in one country acquires assets in another country, such as by establishing business operations or buying a company.
2) There are several types of FDI, including purchasing existing assets, new investments, and participating in international joint ventures. Factors that encourage FDI include financial incentives from governments, market potential, and political stability in the host country.
3) While FDI provides benefits like increased investment, jobs, and technology transfer, it also poses some costs such as potential detriment to domestic producers and influence over the local culture in the host country. India has pursued policies to promote FDI by allowing it across most sectors.
Foreign direct investment (FDI) refers to cross-border investment made by a firm or individual in business interests located in another economy. FDI creates long-term connections between economies and facilitates the transfer of technology and access to foreign markets. While FDI brings financial resources and skills, it also presents risks like reducing domestic investment and competition for local firms. India has improved its investment policies since economic liberalization and is now one of the top destinations for global FDI.
This document provides an overview of foreign direct investment (FDI) and foreign institutional investment (FII) in India. It begins with defining FDI and FII, then outlines the key differences between the two. The presentation reviews India's FDI policy evolution and liberalization over time. It also provides sector-specific FDI guidelines for various industries like telecommunications, aviation, broadcasting, print media, and insurance. The procedural aspects of investing under the automatic and approval routes are also summarized.
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.
This document discusses foreign direct investment (FDI) in India. It provides background on FDI, including its introduction in India in 1991. The key advantages of FDI for India are listed as economic growth, increased employment, superior products, and investment. Some sectors that attract significant FDI are infrastructure, automotive, retail, and technology. While there are also some disadvantages like limited jobs and loss of control, the document concludes that FDI provides more benefits to India given its developing economy through job creation, revenue growth, and higher quality goods.
This document discusses foreign direct investment (FDI) in India. It defines FDI as cross-border investment made by a company in one country into business operations in another country, with the goal of establishing a long-term stake. FDI brings capital, technical skills, and management expertise to the host country. India has pursued policies to liberalize and promote FDI since the 1990s across many sectors like telecom, IT, pharmaceuticals, and automobiles. FDI is regulated through the automatic route or government approval route depending on the sector. Major sources of FDI for India include Mauritius, Singapore, the US, and the UK.
Hindustan Unilever Limited Marketing Strategies for rural and urban India for toothpaste, detergent and other markets. Comparison between already applied steps and possible steps.
a brief presentation on Indian Economy. this presentation will be very much helpful for beginner students of enonomics and civil service. This presentation is about India and its future. Where is Indian economy at present and where will be.
a brief presentation on Indian Economy. this presentation will be very much helpful for beginner students of enonomics and civil service. This presentation is about India and its future. Where is Indian economy at present and where will be.
The document discusses the Indian banking sector, including non-banking financial companies (NBFCs). It notes that robust demand, innovation in services, and policy support have contributed to growth in the sector. Some key points:
- Total banking assets in India are projected to grow from ₹90.12 trillion in FY12 to ₹1712.28 trillion in FY25, driven by rising incomes and the growing unbanked population.
- NBFCs play an important role by providing financial services to those without access to banks and by taking on higher risks than banks in sectors like infrastructure and SME financing.
- Major types of NBFCs include housing finance companies, investment companies
The document discusses the Family Life Cycle model developed in the 1960s, which segments families into stages based on age, marital status, career, income, and presence of children. It identifies seven common stages including young singles, newly married couples, families with young children, empty nesters, and widowed seniors. Understanding where families are in this cycle helps marketers identify their purchasing behaviors and target appropriate products. The document then provides an example of how Horlicks nutritional drink brand uses the FLC model to target different products to families at each stage, such as versions for breastfeeding mothers, children, and adults.
This document discusses social media marketing and how it has become a paradigm shift in marketing practices. It defines social media marketing as engagement with social media tools to generate exposure, opportunity, and sales. It discusses how social media allows for participatory and multi-way communication between brands and customers. The top 5 social networks are identified as Facebook, Twitter, LinkedIn, MySpace, and Google Plus in terms of unique monthly visitors. The document outlines the key components of a social media marketing system and process and lists common social media tools. It describes how social media marketing can build brand loyalty through conversation and dialogue on social networks while shifting power from brands to consumers.
The document summarizes social commerce (S-commerce), which involves using social media platforms to facilitate online shopping. It discusses four key forces driving S-commerce: 1) explosive growth of social networks like Facebook, 2) increasing time spent on social networks, 3) use of social networks to research products, and 4) merchant investment in social media platforms. It then provides examples of how some merchants are engaging in S-commerce, such as using shopping carts on Facebook, driving sales through daily deal sites, and promotional activities on social media. Finally, it introduces Socialify, a tool that integrates with Shopify to allow merchants to sell directly through their Facebook pages.
Career planning is a systematic approach to career development that aligns with an organization's strategic objectives. It involves both employee-centered career planning through self-assessment and counseling, and organization-centered career management using HR functions. Effective career planning requires a proactive employee and supportive HR practices like training and mentoring. It is also important for succession planning and developing an organization's talent pipeline. As organizations face changing business needs, career planning and succession planning must also transform to use objective assessments and be inclusive and transparent.
Knowledge is skills and information acquired through experience or education. Knowledge management is the process of utilizing knowledge through organizing, directing, staffing, controlling, and planning. It has applications in many fields including business administration, IT, libraries, computer science, public health, and public policy. Knowledge management requires capturing, organizing, providing access to, and sharing both explicit and tacit knowledge through technological conduits that enable systemic sharing based on trust. It aims to leverage knowledge as an intangible asset for innovation and wealth creation in a knowledge-based economy.
The document summarizes ITC Limited, an Indian conglomerate. It describes ITC's history, vision, mission, values and problem solving approaches such as triple bottom line and 360 degree appraisals. ITC aims to enhance stakeholder value through world-class performance while pursuing economic, social and environmental goals. Some of its initiatives include the e-Choupal program benefiting farmers and efforts to increase renewable energy use, afforestation, and reduce waste.
Green marketing a marketing practice with e-marketingKoushik Dutta
The document discusses green marketing and e-marketing. It defines green marketing as environmentally friendly and sustainable marketing that improves environmental quality while satisfying customers. It outlines the objectives of green marketing and challenges companies may face in adopting green strategies. The document also discusses the 4Ps of green marketing including packaging. It emphasizes that green marketing must avoid "myopia" by meeting customer needs. E-marketing is presented as a tool that can help promote green products through online channels like email, social media, search engines, and referrals.
The document discusses the question of whether vampires really exist by exploring both sides of the argument. It notes that some believe vampires could have been real people who were misdiagnosed as dead or acted strangely due to rabies. However, others argue that vampire stories come from fiction and there is no scientific evidence they exist. The document also considers a middle view that some historical accounts could suggest vampires may have been real. It then explores how vampires are described in folklore and debates their origins and global legends throughout history.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Unlock Your Potential with NCVT MIS.pptxcosmo-soil
The NCVT MIS Certificate, issued by the National Council for Vocational Training (NCVT), is a crucial credential for skill development in India. Recognized nationwide, it verifies vocational training across diverse trades, enhancing employment prospects, standardizing training quality, and promoting self-employment. This certification is integral to India's growing labor force, fostering skill development and economic growth.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
1. Foreign Direct
Investment : in respect
with Constitution of
India
Koushik Dutta
School of Management Sciences,
Indian Institute of Engineering Science and Technology, Shibpur
2. FDI in a nutshell
• Foreign direct investment (FDI) is a
• direct investment into production or business in a country by a foreign individual or
company either by buying a company in the target country or by expanding
operations of an existing business in that country.
• Foreign direct investment is in contrast to portfolio investment which is a passive
investment in the securities of another country such as stocks and bonds.
Major Bodies Constituted for FDI
1991- Foreign Investment Promotion Board FIPB
1996- Foreign Investment Promotion Council FIPC
1999- Foreign Investment Implementation Authority FIIA
2004- Investment Commission- Secretariat for Industrial Assistance (SIA)
3. Genesis of “Doing Business” in India
1. Part III, Fundamental Rights
• Right to Business (19-1-g)
• to practise any profession, or to carry on any occupation, trade or business.
2. Part XI, Chapter 1
• Distribution of Legislative Powers (245-255)
• Lists - Union List, State List and Concurrent List
3. Industrial Policy Resolution 1948
• Declared Indian Economy as Mixed Economy
• Small scale industries and cottage industries were given higher importance
• Govt. imposed restriction on foreign investment
4. Genesis of “Doing Business” in India
Economic Constitution of India
• This laid down the basic framework of Industrial Policy
• It is classified into three sectors
• Schedule A – which covers Public Sector (17 Industries)
• Schedule B – covering Mixed Sector (i.e. Public & Private) (12 Industries)
• Schedule C – only Private Industries
• Public Sector
• Small Scale Industry (SSI)
• Foreign Investment in India (FII)
• Special Provisions (Exclusive Public Sector enterprises)
• Rail Transport | Atomic Energy
• Minerals (Coal and Lignite) | Arms and Ammunition
5. FORBIDDEN TERRITORIES
FDI is not permitted in the following industrial sectors:
• Arms and ammunition.
• Atomic Energy.
• Railway Transport.
• Coal and lignite.
• Mining of iron, manganese, chrome, gypsum, sulphur, gold, diamonds, copper, zinc.
• Lottery Business
• Agricultural or plantation activities
• Housing and Real Estate Business (except development of townships, construction of
residential/commercial premises, roads or bridges to the extent specified in
Notification No. FEMA 136/2005-RB dated July 19, 2005).
6. Entry Strategies for Foreign Investor
• Foreign Company has the following options to set up business operations in India :
• By incorporating a company under the Companies Act, 1956
• A wholly owned subsidiary
• Joint venture company - existing company or new company with domestic partner
• As an unincorporated entity
• Liaison Office - approval by RBI
• not permitted to undertake any commercial/trading/industrial activity
• Does the job of informational role
• promote export/import from/to India and also facilitate technical/financial collaboration between
parent company/Group companies and companies in India
• Project Office
• Temporary in nature
• Branch Office - approval by RBI
• Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up
Branch Offices in India for specified purposes
• Permitted to remit outside India profit of the branch
7. FOREIGN INVESTMENTS THROUGH GDRS (EURO ISSUES)
Foreign Investment through GDRs is treated as Foreign Direct Investment
• A Global Depository Receipt (GDR) also known as International Depository Receipt (IDR), is a
certificate issued by a depository bank, which purchases shares of foreign companies and deposits it
on the account.
• They are the global equivalent of the original American Depository Receipts (ADR.
• Typically 1 GDR is equal to 10 underlying shares, but any ratio can be used.
• It is a negotiable instrument which is denominated in some freely convertible currency.
• GDRs enables a company (issuer) to access investors in capital markets outside of its home country.
• Several international banks issue GDRs, such as JPMorgan Chase, Citigroup, Deutsche Bank, The
Bank of New York Mellon.
• GDRs are often listed in the Frankfurt Stock Exchange, Luxembourg Stock Exchange and in the
London Stock Exchange, where they are traded on the International Order Book (IOB).
8. USE OF GDRS
The proceeds of the GDRs can be used for-
• Financing capital goods imports,
• Capital expenditure including domestic purchase/installation of plant.
• Equipment and building
• Investment in software development,
• Prepayment or scheduled repayment of earlier external borrowings, and
• Equity investment in companies in India.
CLEARANCE FROM FIPB
• There is no restriction on the number of Euro-issue to be floated by a company or a group of
companies in the financial year.
• Annex III of new IPR 1991, if a company engaged in the manufacturing of items whose FDI after a
proposed Euro issue is likely to exceed 51% or else need to prior FIPB clearance before seeking final
approval from Ministry of Finance.
9. Approval of FDI in India
1. Automatic Route by RBI
• No need of Prior Approval From FIPB, RBI or GOI.
• Only need to notify RBI-RO within 30 days of receipt of inward remittances.
• And File the required documents along with form FC-GPR* with that Office within 30
days of issue of shares to the non-resident investors.
The Reserve Bank of India accords automatic approval within a period of two weeks
(provided certain parameters are met) to all proposals involving:
• Foreign equity up to 50% in 3 categories relating to mining activities .
• Foreign equity up to 51% in 48 specified industries.
• Foreign equity up to 74% in 9 categories .
* FC-GPR- Foreign Collaboration - General Permission Route
10. Approval of FDI in India
2. The FIPB Route
• FDI in activities not covered under the automatic route require prior government
approval.
• Approvals of all such proposals including composite proposals involving foreign
investment/foreign technical collaboration is granted on the recommendations of
FIPB.
• Application for all FDI cases, except NRI investments and 100% EOUs, should be
submitted to the FIPB Unit, DEA, Ministry of Finance.
• Application for NRI and 100% EOU cases should be presented to SIA in Department of
Industrial Policy and Promotion (DIPP).
• Application can be made in Form FC-IL. Plain paper applications carrying all relevant
details are also accepted.
• No fee is payable.
11. Approval of FDI in India
3. CCFI Route
• Investment proposals falling outside the automatic route.
• Having a project cost of Rs. 6,000 million or more would require prior approval of
Cabinet Committee of Foreign Investment (“CCFI”).
• Decision of CCFI usually conveyed in 8-10 weeks. Thereafter, filings have to be made
by the Indian company with the RBI.
12. Why FDI ? From Firm’s PoV
1. Gain a foothold in a new geographic market.
2. Increase a firm’s global competitiveness and
positioning.
3. Fill gaps in a company’s product lines in a
global industry.
4. Reduce costs in areas such as R&D,
production, and distribution.
Factors required to attract FDI
• Low cost BUT Qualified, Educated/Skilled Labor
Pool.
• Long-term Market Potential OR Yields greater than
can be achieved Domestically.
• Access to Natural Resources.
• Geographical advantage
• Stability of the economic and Political Environment.
13. SECTORIAL GUIDELINES FOR FDI
• Airports- Automatic Route: 100% in green field, 74% in existing project (else permission from GoI)
• Telecom- Automatic Route: 49% in basic services (49% - 74% FIPB), 100% in manu. of tel. equipment.
• Domestic Airlines- Automatic Route: 49% by all, 100% by NRIs. [foreign airlines are not allowed to have
any direct or indirect equity participation.]
• Drugs & Pharma- Automatic Route: 100% manufacture of drugs and pharmaceuticals. 74% in the case of
bulk drugs, their intermediates Pharmaceuticals and formulations (else permission from GoI).
• Insurance- Automatic Route: 49%. [license from the Insurance Regulatory & Development Authority
(IRDA) has to be obtained.]
• Petroleum and natural gas sector- Automatic Route: 100% - Petroleum and natural gas sector, other
than refining and including market study and formulation; setting up infrastructure for marketing.
• Automatic Route: 100% FDI is permitted in Indian Private Companies, 26% FDI is permitted in Public
Sector Undertakings with Government approval
• Trading- Automatic Route: 100% in Wholesale / cash & carry trading, 100% in Exports,
• Govt. approval: 100% in trading of items sourced from small scale sector and 51% single brand
product retailing.
14. SECTORIAL GUIDELINES FOR FDI
• Print Media- Subject to the guidelines issued by the Ministry of Information and Broadcasting: 100% in
publishing/printing scientific & technical magazines, periodicals & journals and 26% in publishing news
papers and periodicals dealing in news and current affairs.
• Private Sector Banking- Automatic Route: 74% subject to guidelines for setting up of branches &
subsidiaries of foreign banks issued by RBI from time to time like minimum 25% must be in rural.
• Broadcasting- Govt. approval route: 49% in setting up hardware facilities such as up-linking, HUB etc.
• 49% in Cable network, 20% in FM radio and 49% FII & 20% FDI in Direct to Home service providers.
• Infrastructure: Automatic Route: 100% FDI in following sector.
• Electricity Generation (except Atomic energy)
• Electricity Transmission & Electricity Distribution
• Mass Rapid Transport System
• Roads & Highways (incl. Toll Roads)
• Vehicular Bridges
• Ports & Harbors
• Hotel & Tourism
15. SPECIAL INVESTMENT AVENUES
• Electronic Hardware and Software Technology Parks- Automatic Route: 100% in electronics and
software industries set up exclusively for exports.
• Eligible to purchase, free of customs duty/ excise duty, of their entire requirement of capital goods, raw
materials and components, spares and consumables, office equipment etc.
• Special Economic Zones- SEZ is deemed to be foreign territory for the purposes of trade operations and
duties and tariffs.
• No cap on Foreign investment for manufacturing items reserved for SSI as well as exemption from
industrial licensing.
• An SEZ unit can be set up to undertake trading activities in addition to manufacturing of goods and
rendering of services.
• Export Oriented Units- Automatic Route: 100% in EOUs even if it is manufacturing an item reserved for
the small scale sector.
• Enjoy several privileges like duty exemption on import and domestic procurement.
• Project with minimum investment of Rs.10 million and above in building, plant and machinery qualify
to be considered under EOU scheme
• Not applicable in agriculture, floriculture, IT, services, hand made jewellery, etc. industry.
• Exemption of Industrial Licensing for manufacture of items reserved for SSI sectors.
16. ILLUSTRATIVE LIST OF SECTORS UNDER AUTOMATIC ROUTE
FOR FDI UP TP 100%
• Most manufacturing activities
• Drugs and pharmaceuticals
• Food processing
• Electronic hardware
• Software development
• Film industry
• Advertising
• Hospitals
• Pollution control and management
• Management consultancy
• Computer related Services
• Research and Development Services
• Construction and related Engineering Services
• Pollution Control and Management Services
• Health related & Social Services
• Travel related services
17. ADVANTAGES OF FDI
• Employment opportunity
• Investment in Needed Infrastructure.
• Positive Influence on BoP.
• New Technology and “Know How”
Transfer.
• Increased Capital Investment.
• Targeted Regional and Sectoral
Development.
DISADVANTAGES OF FDI
• Industrial Sector Dominance in the
Domestic Market.
• Technological Dependence on Foreign
Technology Sources.
• Disturbance of Domestic Economic Plans in
Favor of FDI-Directed Activities.
• “Cultural Change” Created by “Ethnocentric
Staffing” The Infusion of Foreign Culture ,
and Foreign Business Practices
18. ADVANTAGES OF INDIA
• Stable democratic environment over 60 years of independence
• Large and growing market
• World class scientific, technical and managerial manpower
• Cost-effective and highly skilled labor
• Abundance of natural resources
• Well-established legal system with independent judiciary.
• Developed banking system and vibrant capital market .
• India among the top three investment hot spots and one of the fastest growing
economies in the world.
• Large English speaking population
19. TYPES OF FDI
• Horizontal FDI- arises, when a firm duplicates its home country based activities at
the same value chain stage in a host country through FDI.
• Platform FDI- FDI from a source country into a destination country for the purpose
of exporting to a third country.
• Vertical FDI- takes place when a firm through FDI moves upstream or downstream in
different value chains i.e., when firms perform value-adding activities stage by stage
in a vertical fashion in a host country.
20. FORMS OF FDI
• Greenfield Investment
• Brownfield Investment
23. BUDGET 2014 & FDI
• Defence Sector: FDI increased from 26% to 49% through FIPB route.
• Insurance Sector: FDI increased from 26 to 49 & offering full management control through FIPB route.
• Manufacturing and e-Commerce Segment: Automatic route to encourage small manufacturers and
MSMEs in order to promote entrepreneurship and also encourage to enter in online market, banking
on the marketplace business model of e-commerce portals but there must be a need for that
particular model.
FDI in Retail in India
• The policy of allowing FDI up to 51 per cent in multibrand retailing (MBRT) said it would be allowed
in each state or UT if the government there had no objection. – State List
• Delhi and Rajasthan are already included as FDI-approved states. And, FDI is a central subject. Thus,
the FDI policy and FEMA will need to be amended to remove these from the list.
• So far, 12 states and UTs had agreed to implement the policy, the majority under Congress rule —
Andhra Pradesh, Assam, Haryana, Uttarakhand, Maharashtra and Karnataka, Haryana and
Maharashtra.
• So far, only UK-based Tesco’s proposal to invest in the sector was cleared by the central government.
24. VIOLATION OF CONSTITUTION
• Entrance of Multinational Multi Brand Retailing Company
• Increase huge competition in domestic market
• Leads to closure of unorganised sector (contributes 60% of Indian retail sector) due to technology.
• MBRT MNCs will enjoy economies of scale
• Domestic firms have to reduce their price and bear loss
• No domestic player in the market
• Creation of MBRT MNC with monopolistic competition violation of Competition Act.
• Violation of
• Article 19(1)(g)[3] of the Indian domestic retailers
• Article14(Right to equality),
• 39(b) (that the ownership and control of the material resources of the community are so distributed as best to subserve the
common good),
• 39(c) (that the operation of the economic system does not result in the concentration of wealth and means of production to
the common detriment).
• Example- USA: Walmart in US follows a strategy of acquisition. They acquire small traders and charges lower
prices initially, thereby reduces the competitors and creates dominance or monopoly and increases the prices
later on.
25. VIOLATION OF CONSTITUTION
• Indian retail sector contributes 13% to GDP and employs 6% of nation’s workforce.
• Indian retail is valued at US$450 million (6.5% is from organised sector).
• So the majority contribution is from the unorganised sector, the persons employed in unorganised sector are so
incompetent that they cannot be employed in any other field.
• Efforts should be made to convert unorganised sector into organised sector then only it would be able to compete
foreign entrants. But without putting any effort giving ticket to foreign players in multi brand retail will
destroyed already imbalanced India’s retail sector.
• Violation of
• Right to livelihood, defined under Article 21[5]
• Directive principle of article 39(a) (that the citizens, men and women equally, have the right to an adequate
means to livelihood).