FOREIGN DIRECT INVESTMENT IN

INDIA

PRESENTED BYANKUR TOMAR

AVINASH
ANKUR GUPTA
KESHAV GAUR

FOREIGN DIRECT INVESTMENT

FDI stands for Foreign Direct Investment , a
component of a countrys national financial
accounts
Foreign Direct Investment is investment of
foreign assets into domestic structure,
equipment, and organizations
It does not include foreign investment into the
stock markets
7/10/15

FOREIGN DIRECT INVESTMENT 2014

FDI 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

7/10/15

FOREIGN DIRECT INVESTMENT 2014

STATS & FACTS

India received FDI worth US $1.47 billion in
July 2013 with cumulative inflow from April
2013-14 stood at $5.9 billion
The 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)
7/10/15

FOREIGN DIRECT INVESTMENT 2014

At least 10% shares of company need to quality

as Foreign Direct Investment
New Delhi & Mumbai are two major cities
where FDI inflow is heavily concentrated
Retailing is the single largest components of the
services sector in terms of contributing of GDP

7/10/15

FOREIGN DIRECT INVESTMENT 2014

ADVANTAGES OF FDI
Inflow of equipment and technology
Competitive advantages and innovation
Improved consumer welfare through reduced
cost, wider choice & improved quality

7/10/15

FOREIGN DIRECT INVESTMENT 2014

 Finance resource for expansive

Employment generation
Provide access to global markets for Indian
producer
Contribution to export growth

7/10/15

FOREIGN DIRECT INVESTMENT 2014

DISADVANTAGES OF FDI
Crowing of local industry
Conflict of laws
Loss of control
Effect on national environment
Effect on culture

7/10/15

FOREIGN DIRECT INVESTMENT 2014

DIFFERENT SECTORS IN FDI

RETAIL SECTOR

7/10/15

FOREIGN DIRECT INVESTMENT 2014

FDI IN RETAIL SECTORS

Indian 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 billion
Consequently organized retail has barely more
than 4% market share
Some stakeholders speculate that millions of
jobs would be lost due to FDI in retail
7/10/15

FOREIGN DIRECT INVESTMENT 2014

10

 With the entry of modern retailers, the market

will expand, creating millions of additional jobs
in retail and other tertiary sectors market share in
India
Growth of infrastructure
Improvement in supply chain and warehousing

7/10/15

FOREIGN DIRECT INVESTMENT 2014

11

FDI IN INSURANCE SECTOR

The Indian Cabinet Committee on Economic
Affairs (ICCEA) is strongly expected to raise
the FDI ceiling in the Insurance and Pension
sectors
FDI 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 period
7/10/15

FOREIGN DIRECT INVESTMENT 2014

12

FDI IN AVIATION
The 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 future
The aviation sector of India has been serving
about 100 million aviation travellers every year,
both international and domestic markets, in the
recent years
7/10/15

FOREIGN DIRECT INVESTMENT 2014

13

We all welcome your Queries and Suggestions

7/10/15

FOREIGN DIRECT INVESTMENT 2014

14