This document provides an overview of foreign capital in India. It discusses the different forms of foreign capital including foreign direct investment, foreign portfolio investment, external aid, and external commercial borrowings. FDI can take the form of joint ventures, technical collaborations, or private placements. FPI includes investments in stocks, bonds, and funds raised through instruments like GDRs and ADRs. External aid may come from other governments, international organizations, or private sources, and can be tied to certain conditions or untied. ECBs comprise loans and credits from foreign commercial and multilateral sources used to finance commercial activities in India. The document also outlines advantages and disadvantages of foreign capital.
Its about economics reforms that were introduced in 1991.
why such reforms were needed ?
what was situation at that time ?
what were the achievement and limitations of economic reforms ?
Foreign capital and technology,Need of foreign capital,forms of foreign capit...Devika A K
Foreign capital and technology,Need of foreign capital,forms of foreign capital,role of foreign capital,problems,foreign investments.theories of foreign investments,factors affecting foreign investments, advantages and disadvantages,policies in india
This slide contains:
Incidence of Tax, its shift-ability, effect of residental status of assesse on taxability of income, effect on tax in different demand situations.
Its about economics reforms that were introduced in 1991.
why such reforms were needed ?
what was situation at that time ?
what were the achievement and limitations of economic reforms ?
Foreign capital and technology,Need of foreign capital,forms of foreign capit...Devika A K
Foreign capital and technology,Need of foreign capital,forms of foreign capital,role of foreign capital,problems,foreign investments.theories of foreign investments,factors affecting foreign investments, advantages and disadvantages,policies in india
This slide contains:
Incidence of Tax, its shift-ability, effect of residental status of assesse on taxability of income, effect on tax in different demand situations.
an analysis about the Indian banking system and the analysis of two major banking sector reforms; Narasimham committee (1 and 2) on banking sector reforms
A power point presentation about India foreign trade's introduction, compostion of its imports and exports, also the direction of its imports and exports, with the help of some data diagrams.
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
an analysis about the Indian banking system and the analysis of two major banking sector reforms; Narasimham committee (1 and 2) on banking sector reforms
A power point presentation about India foreign trade's introduction, compostion of its imports and exports, also the direction of its imports and exports, with the help of some data diagrams.
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
A foreign direct investment 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 a foreign portfolio investment by a notion of direct control.
In International Financial market, Foreign operations are nothing without Financing. In this Presentation I have tried to provide all the information regards Financing for foreign operations unit in Multinational financial management with the help of some references
Foreign capital inflow in india- analysis , impact , measure , wayforwardAman Sindhwani
Foreign Investment In India ,Need for foreign capital, factors affecting foreign Inflows , Capital Flows in India , impact , Measures and a way forwards
There are two main aspects of funds, one with the surplus funds and another one who lack funds. In order to bridge the gap between the two, the concept of these institutions has come into existence.
They act as an intermediary between the savers(people with surplus funds) and the borrowers(people who lack funds). They are extremely important for the economy.
Financial Institutions fuel or energizes the economy by issuing a credit which comes in the form of credit, and other forms.
By issuing credit, they help people or organizations to purchase goods and services and fulfill their needs. A financial institution is also called as the supplier of liquidity to the economy or the market through demand deposits and credit lines.
The economic growth potential that can result from shift in a Population’s age structure, mainly when the share of working age population (15-64) is larger than the non-working age share of the population(14 Years and younger and 65 years and older)
working age population is the population in the age group of 15-64 in the economy currently employed.
People who are still undergoing studies, housewives and persons younger than 15 and above the age of 64 are not reckoned in the labour force. Labour Force Participation Rate (LFPR) is defined as the number of persons in the labour force divided by the total working age population.
The Planning Commission set up a Working Group in 1962. It recommended that the national minimum for a household of 5 persons should be not less than Rs. 100/- per month for rural and Rs. 125/- for urban at 1960-61 prices.
Environment means the surroundings or conditions of life, may be social, political, economic, cultural, natural etc.
Natural resources are used with other man made resources in order to produce goods in agriculture, industry or other spheres of economic activity.
Unit 4 c) changes in policy perspectives role of institutional framework afte...Mahendra Kumar Ghadoliya
Development of Indian economy has passed from many phases. We followed the policy of Import Substitution and restrictive trade policies. we liberalized the economy gradually and slowly. After 1991 Industrial policy India followed path of Liberalization.
Meaning of economic development, core values in economic development, Developed countries, Underdeveloped countries, Characteristics , Difference between Economic Growth and Economic Development.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
2. Contents
• Introduction
• Forms of Foreign capital
• Advantages of foreign Capital
• Disadvantages of Foreign Capital
• Government Policy
3. Introduction
• Relationship between capital and development
• To raise rate of growth through rapid industrialization
• Low saving, low rate of capital formation
• Lack of skills and technical know-how
• Shortage of resources for development
• Foreign capital is an important source of finance in the development.
• Overcome BoP crisis
• Foreign capital is needed for competition and break domestic
monopolies, to raise investment and employment
4. Components of Foreign Capital in India
1. Foreign Capital Investments
2. Foreign Aid
3. External Commercial Borrowings
1. Foreign Capital Investments:-
• Foreign capital investments refer to investments made by an
entity which is not the resident of the country. In India there are
two components of foreign capital Investments:
(i) Foreign Direct Investments (FDI)
(ii) Foreign Portfolio Investments (FPI)
5. (i) Foreign Direct Investments (FDI):
• FDI refers to the physical investments made by foreign investors in
the domestic country. The physical investments refer to the direct
investments into building, machinery and equipment.
• The direct investor can be an individual, public or private
enterprises (referred to multinational corporations or MNCs) or
Government.
• The important forms of FDI are investments through:
(i) Financial Collaboration
(ii) Joint Ventures and Technical Collaboration
(iii) Capital Markets
(iv) Private Placements.
6. (ii) Foreign Portfolio Investments (FPI):
FPI refers to the short-term investments by foreign entity in the financial markets.
These are indirect investments and include investment in tradable securities, such
as shares, bonds, debenture of the companies. Foreign Portfolio investors don’t
exert management control on the enterprise in which they invest.
There are three kinds of FPI in India:
a) Foreign Institutional Investment: These are the investments made by foreign
institutions like pension funds, foreign mutual funds etc. in the financial markets.
b) Funds raised through Global Depository Receipts or American Depository
Receipts (GDRs/ADRs): GDRs and ADRs are instruments which signify the
purchase of share of Indian companies by foreign investors or American investors
respectively.
c) Off-shore funds: The schemes of mutual funds that are launched in the foreign
country.
7. 2.External Aid
• External aid refers to the concessional foreign finance with flexible
terms and conditions. It may be in the form of long term concessional
debt or grants (doesn’t involves any repayment obligations). The
tenure of the aid is generally very long. The important sources of
foreign aid in India are:
(i) Official Aid:
• It is given by foreign governments or international official bodies such
World Bank, International Monetary Fund (IMF), Asian Development
Bank (ADB) etc. It can be:
• Bilateral Aid- It is between government to government basis.
• Multilateral Aid –It is Foreign Assistance through International Institutional
Agencies- World Bank, IMF.
8. 2.External Aid-2
• Further, official aid (Bilateral or Multilateral) can be Government
Aid (i.e. aid that passes through government) or Non-
Government Aid (i.e. aid received by non-government bodies
directly from bilateral or multilateral agencies).
• (ii) Private Aid: It is the fund which is received from private
individuals, firms or institutions.
9. External aid may also be distinguished as:
Tied aid
Untied aid.
• The tied aid is given with conditions in terms of its use e.g for the
purchase of goods for specific purpose or to be spent on specific
country.
• The untied aid can be used freely by the recipient country. Foreign
aid allows an access to foreign funds without putting pressures of
their repayment.
10. Problems with Foreign Aid-
• Political Pressures:
• Uncertainty of Aid:
• Restrictive Use:
• Low Utilization Rate:
• Complacent domestic initiatives:
• Despite the problems associated with foreign aid, factors, such as
lower cost, long-term nature of aid, have encouraged the
dependence on foreign aid in comparison to commercial funds. In
the recent years however, there is a significant decline in foreign
aid as a percentage of GDP.
11. 3. External Commercial Borrowings
• Any money that has been borrowed from foreign sources for
financing the commercial activities in India are called External
Commercial Borrowings. The Government of India permits ECBs
as a source of finance for Indian Corporates for expansion of
existing capacity as well as for fresh investment.
12. Foreign Sources
• The ECBs are defined as money borrowed from foreign resources
including the following:
• Commercial bank loans
• Buyers’ credit and suppliers’ credit
• Securitised instruments such as Floating Rate Notes and Fixed
Rate Bonds etc.
• Credit from official export credit agencies and Commercial
borrowings from the private sector window of Multilateral
Financial Institutions such as International Finance Corporation
(Washington), ADB, AFIC, CDC, etc.
13. How ECB is different from FDI?
• External Commercial Borrowings is not meant for Equity
participation. If the foreign capital is used to finance the Equity
Capital, it would be termed as Foreign Direct Investment.
• The ECB should satisfy the RBI regulations in this regard.
• The Bonds, Credit notes, Asset Backed Securities, Mortgage Backed
Securities or anything of that nature are included in ECB.
• The following are not included in the ECBs: Any Investment made
towards core capital of an organization such as equity shares,
convertible preference shares or convertible debentures.
• The convertible instruments are covered under the FDI Policy.
14. Advantages of foreign Capital
• Technical and Managerial Improvement
• Supplement domestic resources
• Human Capital improvement
• Ease balance of payment position
• Infrastructure development
• Create competitive and efficient Business Environment
• Augmentation of employment opportunities
• Better corporate practice
• Improvement in financial System
• Contribution to national exchequer
15. Disadvantages of foreign Capital
• Can Aggravate Monopolistic Tendencies
• Old technology
• Income Inequalities
• Profit goes out of the country
• Luxury consumption pattern
• Reduce foreign exchange
• Volatility in the market
• Regional disparities
• Crowds out local entrepreneur and Growth