FDI-CONCEPT

Foreign Direct investment(FDI) refers to long term participation by country A into country B. It usually involves participation in management, jointventure, transfer of technology, etc.

FDI- may include individual or group of individuals, a public company or a private company, or a government body.
FDI is made to serve the business interests of a country.

Methods of FDI
By incorporating a wholly owned subsidiary or company. By acquiring shares in an associated enterprises.

Through a merger or an acquisition of an unrelated enterprise.

Participating in an equity joint ventures with an another investor or enterprises.

Licensing and technology transfer.

Reciprocal distribution agreement. Portfolio investment.

TYPES OF FOREIGN DIRECT INVESTMENT

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1.OUTWARD FDI.

2.INWARD FDI.

3 VERICAL FDI.

4 HORIZENTAL FDI.

5 MARKET SEEKING FDI.

6 RESOURCE SEEKING FDI.

FDI PROCEDURE IN INDIA

FDI in India are approved through two routes:Automatic approval: FDI up to 100 per cent is allowed under the automatic route in almost all the activities/sector. under the automatic route does not require any prior approval either of the Government or the Reserve Bank of India.

Government Route:FDI in activities not covered under the automatic route requires prior approval of the Government which are considered by the Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of Finance

Advantages & Disadvantages

ADVANTAGES
EMPLOYMENT GENERATION
UPGRADATION OF TECHNOLOGY

DIFFERENCE IN LANGUAGE AND CULTURE. POLICIES ADAPTED MAY NOT BE APPERICIATED

DISADVANTAGES

IMPROVEMENT IN EXPORT COMPETITIVENESS

BENEFITS TO CONSUMER

LOCAL RETAILORS ARE AFFECTED BADLY

SMALL SCALE INDUSTRY WILL ALSO BE ADVERSLY EFFECTED.

REVENUE TO THE GOVERMENT

Foreign direct investment limits in various sectors of India

0% FDI is permitted : Agriculture (except Tea) : Housing and real estate [except NRI] 26% FDI is permitted in : Defense : Insurance : Newspaper and media : Petroleum refining 49% FDI is permitted in : Banking : Cable network : DTH : Infrastructure investment : Telecom 51% FDI is permitted in 100% FDI permitted in Single Brand. Petro-pipelines

 74% FDI is permitted in : Atomic minerals : Science Magazines /Journals : Petro marketing : Coal and Lignite mines : Telecom 100% FDI is permitted in : Single Brand Retail : Advertisement : Airports : Cold-storage : BPO/Call centers : E-commerce : Energy (except atomic) : export trading house : Films : Hotel, tourism : Metro train : Mines (gold, silver) : Petroleum exploration : Pharmaceuticals : Pollution control : Postal service : Roads, highways, ports.

MADE BY: RAVI, KUNAL, RAJESH, SHAILENDRA, MANDEEP, SUJEET, MOHSEEN.