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Foreign Direct Investment
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What is FDI
Foreign Direct Investment is the purchase
by the investors or corporations of one
country of non-financial assets in another
country. This involves a flow of capital
from one country to another to build a
factory, purchase a business or buy realestate.
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OBJECTIV
E
TO STUDY THE IMPACT OF FDI ON
MANUFACTURING ,INFRASTRUCTURE AND SERVICE
SECTOR.
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NEE
D
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SCO
PE
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RE
VIE
WO
F LITE
RATURE
Research report: Foreign Direct Investment and Growth: Does the
sector matter
Abstract: FDI gives great advantages to the host country and the research report
showed the benefits of FDI upon various sectors by examining the effect ofFDI on growth in the primary, manufacturing and services sector. The author
has used the empirical analysis technique and used cross country data for the
period 2004-2009 and found that the FDI has a great effect on the growth.
FDI in the primary sector showed a negative effect while investment in
manufacturing showed a positive result and the growth in the service sectorwas the most.
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Research report: Foreign Direct Investment in India
This paper analyses the route which FDI takes to come to India, its dimensions andtrends and the reasons for low FDI in India. The paper finds the main reasons of
low FDI as non implementation of approved projects, infrastructure backwardness,
low labour efficiency as well as procedural delays, red - tapism and corruption.
Research report: How FDI has helped the Indian economy to grow
Foreign direct investment (FDI) in India has played an important role in thedevelopment of the Indian economy. FDI in India has - in a lot of ways - enabled
India to achieve a certain degree of financial stability, growth and development.
This money has allowed India to focus on the areas that may have needed economic
attention, and address the various problems that continue to challenge the country.
India has continually sought to attract FDI from the worlds major investors. In
1998 and 1999, the Indian national government announced a number of reformsdesigned to encourage FDI and present a favorable scenario for investors.
FDI investments are permitted through financial collaborations, through private
equity or preferential allotments, by way of capital markets through Euro issues,
and in joint ventures. FDI is not permitted in the arms, nuclear, railway, coal &
lignite or mining industries.
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RE
SE
ARC
H ME
THO
DO
LOG
Y Descriptive methodology is being used in
this research project.
The type of test applied in this research is
the regression.
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Investing in India Entry Routes
Automatic RoutePrior Permission
(FIPB)
Investing in India
General rule
No prior permission
requiredOnly information to the
Reserve Bank of India
within 30 days of inflow/
Issue of shares
By exception
Prior Government
Approval needed
Decision generally
Within 4-6 weeks
Investing in India Entry Routes
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Manufacturing
100% FDI permitted in all activities under automatic routeexcept:
Cigar and cigarettes of tobacco
Products reserved for Small Scale Sector
Defence products
FDI Policy for Industry Sector
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FDI Policy for Service Sector-Infrastructure
Roads & Highways
Airports
Telecom
Shipping and Ports
Railways
Industrial Parks
Hospitals
Hotels & Tourism
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FDI Policy . Prohibited activitiesFDI Policy . Prohibited activities
Atomic energy
Lottery business
Betting and Gambling
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FDI Inflows- Sector -wise
Electrical equipment including softwaremoves to over all 2nd position in Nov 2006.
Services sectorshows spurt in growth andthe top sector attracting FDI moving up from
the third position.
Spurt in FDI in Real Estate causes the
construction sector to the third position in Nov
2006.
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Thank you!!!
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