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FOREIGN DIRECT INVESTMENT IN INDIA

PRESENTED BY- ANKUR TOMAR AVINASH ANKUR GUPTA KESHAV GAUR

FOREIGN DIRECT INVESTMENTFDI stands for Foreign Direct Investment , a component of a countrys national financial accountsForeign Direct Investment is investment of foreign assets into domestic structure, equipment, and organizationsIt does not include foreign investment into the stock markets3 November 2014FOREIGN DIRECT INVESTMENT 20142FDI is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially hot money which can leave at the first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly

3 November 2014FOREIGN DIRECT INVESTMENT 20143STATS & FACTSIndia received FDI worth US $1.47 billion in July 2013 with cumulative inflow from April 2013-14 stood at $5.9 billionThe sector which attracted huge FDI inflows during the April 2013-14 are service (US$1.65 million), pharmaceuticals (US$428 million), construction (US$421million), metallurgical industries (US$ 334 million), power (US$ 237 million) and automobile (US$ 234 million)3 November 2014FOREIGN DIRECT INVESTMENT 201443 November 2014FOREIGN DIRECT INVESTMENT 20145At least 10% shares of company need to quality as Foreign Direct InvestmentNew Delhi & Mumbai are two major cities where FDI inflow is heavily concentratedRetailing is the single largest components of the services sector in terms of contributing of GDP

ADVANTAGES OF FDIInflow of equipment and technologyCompetitive advantages and innovationImproved consumer welfare through reduced cost, wider choice & improved quality3 November 2014FOREIGN DIRECT INVESTMENT 20146Finance resource for expansiveEmployment generationProvide access to global markets for Indian producer Contribution to export growth

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DISADVANTAGES OF FDICrowing of local industryConflict of lawsLoss of controlEffect on national environmentEffect on culture

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DIFFERENT SECTORS IN FDI3 November 2014FOREIGN DIRECT INVESTMENT 20149FDI IN RETAIL SECTORSIndian retailers have made steady progress in the pass decade, their efforts fall short in matching global norms in a sector estimated to be worth more than $450 billionConsequently organized retail has barely more than 4% market shareSome stakeholders speculate that millions of jobs would be lost due to FDI in retail

3 November 2014FOREIGN DIRECT INVESTMENT 201410With the entry of modern retailers, the market will expand, creating millions of additional jobs in retail and other tertiary sectors market share in IndiaGrowth of infrastructureImprovement in supply chain and warehousing3 November 2014FOREIGN DIRECT INVESTMENT 201411

FDI IN INSURANCE SECTORThe Indian Cabinet Committee on Economic Affairs (ICCEA) is strongly expected to raise the FDI ceiling in the Insurance and Pension sectorsFDI threshold to 49% in the Insurance sector from the existing limit of 26%, has been submitted to the cabinet for proper approval in the quickest possible period3 November 2014FOREIGN DIRECT INVESTMENT 201412FDI IN AVIATIONThe latest visionary decision of the Government of India to allow FDI 49% in Indias domestic aviation industry of India, and attract massive Foreign Direct Investment in the aviation sector of India, in short and long futureThe aviation sector of India has been serving about 100 million aviation travellers every year, both international and domestic markets, in the recent years3 November 2014FOREIGN DIRECT INVESTMENT 201413

3 November 2014FOREIGN DIRECT INVESTMENT 201414We all welcome your Queries and Suggestions