Indian Economy – 2014

GDP & PCI In India

New Series (CPI-NS) – Base Year 2010

According to IMF, FDI (foreign direct investment) can be defined as “investment that is made to acquire a long-term interest in an enterprise operating in an economy other than that of investor, the investor’s purpose being to have effective voice in the management of the enterprise”

Foreign Direct Investment

Routes of Foreign Direct Investment

Automatic RouteFDI is allowed under the automatic route without prior

approval either of the Government or the Reserve Bank of India in all activities/sectors as specified in the consolidated FDI Policy, issued by the Government of India from time to time.

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.

WHO CAN INVEST IN INDIA? • A non-resident entity (other than a citizen of Pakistan or

an entity incorporated in Pakistan) can invest in India, subject to the FDI Policy. A citizen of Bangladesh or an entity incorporated in Bangladesh can invest only under the Government route.

• NRIs resident in Nepal and Bhutan as well as citizens of Nepal and Bhutan are permitted to invest in the capital of Indian companies

• A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) resident outside India can invest in the capital of a firm or a proprietary concern in India

Foreign Portfolio Investment by FIIs

• This Investment allowed to FIIS registered with SEBI • All transactions are regulated under SEBI (FII)

Regulations, 1995 and Regulation 5(2) of FEMA

FIIs includes: 1. Asset Management Companies, 2. Pension Funds & Mutual Funds, 3. Investment Trusts as Nominee Companies, 4. Institutional Portfolio Managers , 5. University Funds, 6. Charitable Trusts and Charitable Societies

Agriculture Credit

Industry

Trends in India’s Foreign Trade