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FDI INTRODUCTION :
Fdi is the investment means border investment Made by a resident of one economy in an enterprise in another economy. fdi is also describe as investment in to business of a country by a company in another country.
Such investment can take place for many reason Including to take advantage of cheaper wages
Special privileges ( eg. Tax exemption )offered by country better opportunities
Fdi is introduced in those states whose intrested and in the favor of fdi The benefit of fdi is also taken by farmers they got the best price of their product (Ex potato price is 3 rs /kg but PepsiCo is giving 7 rs /kg )
Its was decided that retail will introduce only in cities with over 10 lakh population , so 53 cities of india come under it some states having an opposition govt if we separate it. there are only 18 cities in which we are introduce it .
Benefit of fdi
Improves position of the country Employment generation and increase in production Help in capital formation by bringing fresh capital Increase competion in local market and this bring higher effciencies Tax revenue is generated by govt
Limitation
Domestic companies fear that they may lose their ownership to overseas company Such foreign company invest more in machinery and intellectual property than in wages of local people Small enterprises fear that they may not fight big fishes like wall mart