FDI IN RETAIL

Vipin das18th Batch

Foreign direct investment

Purchase of physical assets or a significant amount of the ownership (stock) of a company in another country to gain a measure of management control.

Advantages of FDI

Increase investment level and thereby income and employment.

Increase tax revenue.Increase in export and reduce Import.Improve quality and reduce cost of

input.

FDI EQUITY LIMIT IN INDIA

Defense production 26% FM broad casting 20% Insurance 49% Domestic Airlines 49% Telecom Service 100% Private Sector Banks 74% Mining Of Diamonds And Precious Stone

74% Courier Service 100%

100% FDI In India Engineering and manufacturing sector. Ports and harbors. Roads and highways. Hotel and Tourism. Advertisement and film industry. Information and technology.

Limitation

Float to high profit areas rather than main concern areas.

Some result in minimizing/eliminating competition and create monopoly.

Factor Affecting FDI Government policy like foreign

investment, Taxation, Tariff. Political Factor. Cost of production encourage by lower

cost of production like raw material ,labor , economic condition.

Market potential. Population. Income.

FDI should be introduced in India.

CONCLUSION

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