fdi in india

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Foreign Direct Investment in India

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Presentation On Foreign Direct Investment (In INDIA) Presented By Rabiul Awal Roll: 08MCA20026 IMCA , 8 th Semester Date:18 th April , 2012

Foreign Direct Investment : 

Foreign Direct Investment What is FDI ? Foreign direct investment ( FDI ) is direct investment by a company in production located in another country either by buying a company in the country or by expanding operations of an existing business in the country. Why FDI ? To take advantage of cheaper wages in the country. Special investment privileges such as tax exemptions offered by the country . To gain tariff-free access to the markets of the country or the region.

Two Types of FDI: 

Two Types of FDI Inward foreign direct investment. Outward foreign direct investment. Direct investment excludes …Investment through purchase of shares. FDI is one example of… International factor movements.

Types of FDI ( In Other Sense ) : 

Types of FDI ( In Other Sense ) Horizontal FDI arises when a firm duplicates its home country-based activities at the same value chain stage in a host country through FDI. Platform FDI Vertical FDI takes place when a firm through FDI moves upstream or downstream in different value chains i.e., when firms perform value-adding activities stage by stage in a vertical fashion in a host country. Whereas Horizontal FDI decrease international trade as the product of them is usually aimed at host country, the two other types generally act as a stimulus for it.

FDI in India: 

FDI in India India is the second most important FDI destination (after China) for transnational corporations during 2010–2012. Sectors which attracted higher inflows were services, telecommunication, construction activities and computer software and hardware. Mauritius, Singapore, the US and the UK were among the leading sources of FDI. FDI in India in 2010 was $44.8 billion, and in 2011 experienced an increase of 25% to $50.8 billion .

Rapid FDI growth in India from 2005 onwards: 

Rapid FDI growth in India from 2005 onwards Source: World Investment Report, Ministry of Finance, World Economic Forum

Rapid FDI growth in India from 2005 onwards: 

Rapid FDI growth in India from 2005 onwards Source: World Investment Report, Ministry of Finance, World Economic Forum

FDI in retail: Positive and Negative arguments and my opinion : 

FDI in retail: Positive and Negative arguments and my opinion Positive arguments: Job opportunities in areas like marketing, agro-processing, packaging, transportation, etc. will be created. Farmers will get a good price for their crops and their exploitation will stop. Infrastructure facilities, refrigeration technology, transportation, etc. will be renovated. Foreign companies will also create a supply-chain in the India market. Negative arguments : Small retailers and other small ‘ Kirana store owners’ will suffer a large loss. Giant retailers and will displace small retailers. foreign giants will purchase their goods from the international market and not from domestic sources. Affect will be on consumers ,retailers ,wholesalers ,farmers (producers).

Protest against the Indian governments move to allow 51% FDI in retail sector

My Analysis: 

My Analysis At the first sight, we can see that benefits are more in numbers, but I think detriments are more serious. In India, we have 11 shops per 1000 people. India has 1.2 crore shops, which gives employment to about 4 crore people. What about the problems which these 4 crore people will suffer?

Thank You