IM PA C T O F FD I O N

IN D IA N
EC O N O M Y

MACRO ECONOMICS

C O N TEN TS
1. FDI
2. BENEFITS OF FDI
3. FDI IN INDIA
4. IMPACTS OF FDI ON INDIAN

ECONOMY
5. FACTS

MACRO ECONOMICS

FD I
FDI is a type of investment that

involves the injection of foreign funds

into an enterprise that operates in
different country of origin from the
investors
It usually involves participation in
management , joint venture ,and
transfer of technology and expertise
FDI can be classified into: Inward FDI & Outward FDI
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B enef t
is of FD I
Economic growth
Trade
Linkages and spillover to domestic

firm
Employment and skill level
Technology diffusion and knowledge
transfer

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FD I in India
A recent UNCTAD Survey Projected India as

the second most important FDI destination

for transactional corporation during 20102012
The Sector which attracted higher inflows
were services ,telecommunication ,
construction activities and computer
software and hardware
Mauritius , Singapore , U.S and the U.K
were among the leading source of FDI.
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IM PA C T O N IN D IA N
EC O N O M Y
FDI has an important impact on countrys trade

balances , increasing labor standard and skills,

transfer of technology , skill and the general
business climate.
FDI also provide an opportunity for-Technological transfer and up gradation ,
-Access to global managerial skills and practices
-Optimal utilization of human capabilities and
natural resources,
-Making industry internationally competitive
and augmenting employment opportunity
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 Indias share in global FDI has

increased considerably, but the pace

of FDI inflow has been slower than
China , Russia , Singapore and Brazil
Indian economy is highly agriculture

based and here is plenty of scope in

food processing, agriculture service
and agriculture machinery. FDI in this
sector should be encouraged

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FA C TS
49% FDI is allowed in aviation sector

in India
Mauritius has been the largest
investor in India($20 billion)
US is the second largest investor in
India
US is the worlds largest recipient of
FDI
Mumbai and New Delhi are two major
cities, where FDI inflows is heavily
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FD IIN FLO W S FO R FY 2012-13

FY-12-13

In crores

In US $

April , 2012

9,620

1857

May , 2012

7229

1327

June ,2012

6971

1244

July , 2012

8182

1474

August ,
2012

12578

2264

44580

8166

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50000
45000
40000
35000
30000
25000
20000

IN CRORES
IN US $

15000
10000
5000
0

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THANK YOU
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