role of fdi’s in india’s growth

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  • 1.Role Of FDIs In Indias Growth presented by: PRASTUT MAURYA AMRIT DEBBARMA SURENDRA KUMAR CHANDRA PRAKASH GOND presented to: Prof. RAJEEV MATHEW

2. Introduction of FDI FDI is a major source of external finance which means that countries with limited amounts of capital can receive finance beyond national borders from wealthier Countries. 3. Different Types of FDI Horizontal FDI Vertical FDI 4. Total FDI Inflows from 2000 to 2013 Financial year(April-March) Amount of FDI inflow (in US $ million) 2000-01 2,463 2001-02 4,065 2002-03 2,705 2003-04 2,188 2004-05 3,219 2005-06 5,540 2006-07 12,492 2007-08 24,575 2008-09 31,396 2009-10 25,384 2010-11 21,383 2011-12 35,121 2012-13 22,423 Total 1,84,954 http://dipp.nic.in/fdi_statistics/india_fdi_index.htm 5. Top 10 FDI Contributors in India Rank Country Cumulative inflows (April 00- Sep 13) US $ M 1. MAURITIUS 76,292 2. SINGAPORE 21,952 3. U.K. 19,432 4. JAPAN 14,920 5. U.S.A. 11,626 6. NETHERLAND 10,025 7. CYPRUS 7,185 8. GERMANY 6,018 9. FRANCE 3,730 10. U.A.E. 2,591 http://dipp.nic.in/fdi_statistics/india_fdi_index.htm 6. Sector attracting Highest FDI Rank Sector Cumulative inflows (April 00- Sep 13) US $ M 1. Service sector 38,562 2. Infrastructure 22,765 3. Telecommunication 12,889 4. Computer hardware & software 11,958 5. Drugs & pharmaceuticals 11,391 6. Chemicals 9,256 7. Automobile industry 9,004 8. Power 8,049 9. Metallurgical 7,747 10. Hotel & tourism 6,796 http://dipp.nic.in/fdi_statistics/india_fdi_index.htm 7. FDI Is Permitted From 26% To 100 % Based On The Nature And Importance Of Industry. Before Economic Reforms In India The Economic Growth Was Very Slow, But After The New Economic Policy Reforms India Is Experiencing The Economic Growth Like A Galloping Horse. Sector FDI Entry Route A. Agriculture 1. Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aquaculture, Cultivation of vegetables & mushrooms and services related to agro and allied sectors 2. Tea sector, including plantation (FDI is not allowed in any other agricultural sector /activity) 100% 100% Automatic FIPB B. Industry 1. Mining covering exploration and mining of diamond & precious stones; Gold, silver and minerals. 2. Coal and lignite mining for captive consumption by power projects and iron & steel, cement production. 3. Mining and mineral separation of titanium bearing minerals 100% 100% 100% Automatic Automatic FIPB www.irjcjournals.org 8. Sector FDI Entry Route C. Manufacturing 1. Alcohol-Distillation & Brewing 2. Coffee & Rubber processing & Warehousing 3. Defence production 4. Hazardous chemicals and isocyanates 5. Industrial explosives -Manufacture 6. Drugs and Pharmaceuticals 7. Power including generation (except Atomic energy); transmission, distribution and power trading. (FDI is not permitted for generation, transmission & distribution of electricity produced in atomic power plant/atomic energy since private investment in this activity is prohibited and reserved for public sector.) 100% 100% 26% 100% 100% 100% 100% Automatic Automatic FIPB Automatic Automatic Automatic Automatic D. Services 1. Civil aviation (Greenfield projects and Existing projects) 2. Asset Reconstruction companies 49% 49% Automatic FIPB www.irjcjournals.org 9. Sector FDI Entry Route 3. Banking (private) sector 4. NBFCs: underwriting, portfolio management services, investment advisory services, financial consultancy, stock broking, asset management, venture capital, custodian, factoring, leasing and finance, housing finance, forex broking etc. 5. Broadcasting a. FM Radio b. Cable network; c. Direct to home; d. Hardware facilities such as up-linking, HUB. e. Up-linking a news and current affairs TV Channel 6. Commodity Exchanges 7. Insurance 8. Petroleum and natural gas a. Refining 9. Print Media a. Publishing of newspaper and periodicals dealing with news and current affairs b. Publishing of scientific magazines / speciality journals/periodicals 10. Telecommunications Basic and cellular, unified access services, national /international long-distance, V-SAT, public mobile radio trunked services (PMRTS), global mobile personal communication services (GMPCS) and others. 74% (FDI+FII). FII not to exceed49% 100% 20% 49% (FDI+FII) 49% 49% (FDI+FII) (FDI 49% FII 23%) 49% (PSUs). 100% (Pvt. Companies) 26% 100% Automatic Automatic FIPB FIPB Automatic FIPB (for PSUs). Automatic (Pvt.) FIPB FIPB Automatic up to 49% and FIPB beyond 49%. www.irjcjournals.org 10. Top 10 FDI Cities in India 1. Bangalore 2. Delhi 3. Pune 4. Mumbai 5. Chennai 6. Hyderabad 7. Kolkata 8. Ahmedabad 9. Nagpur 10.Jaipur 11. India Has Continually Attracted FDI From The Worlds Major Investors. In 1998 And 1999, The Indian National Government Announced A Number Of Reforms Designed To Encourage And Promote A Favorable Business Environment For Investors. INDIAN SCENARIO Foreign Direct Investment (FDI) is permitted as under the following forms of investments. 1. Through financial collaborations. 2. Through joint ventures and technical collaborations. 3. Through capital markets via Euro issues. 4. Through private placements or preferential allotments. Forbidden Territories: FDI is not permitted in the following industrial sectors: 1. Arms and ammunition. 2. Atomic Energy. 3. Railway Transport. 4. Coal and lignite. 5. Mining of iron, manganese, chrome, gypsum, sulphur, gold, diamonds, copper, zinc. http://www.mairec.org 12. Advantages Of FDI Growth in Economy Job opportunity Good Infrastructure Competition Availability of new technology Increase in saving & investment Contribution to exports 13. Disadvantages Of FDI Effect of local culture Effect of natural environment Threaten small scale industry Exploitation of resources Technology 14. BIBLIOGRAPHY http://www.mairec.org http://dipp.nic.in/fdi_statistics/india_fdi_index.htm www.irjcjournals.org www.fdi.gov.in http://www.vccircle.com/500/news/india-fdi-inflow-dips-25-in-11-months-of- 2010- 2013 http://en.wikipedia.org/wiki/Foreign_direct_investment http://www.legalindia.in/foreign-direct-investment-in-indian-retail-sector- %E2%80%93-an-analysis http://businesstoday.intoday.in/story/fdi-in-retail/1/20408.html

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