Mr.sameer Rode & Mr.Pathan FDI PPT

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CONCEPT OF FDI

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Technospirit-2013:

Technospirit-2013 Shree shivaji institute of engineering and management studies Parbhani-431401

Welcome :

Welcome To respected Staff & my dear friends

A seminar on FDI:

A seminar on FDI presented by- Mr.Sameer P. Rode Mr.Pathan Tayyab MBA(fY) SSIEMS,parbhani

Contents :

Contents Introduction Definition Types Criteria FDI regime Govt. policy Advantage Disadvantage Conclusion

INTRODUCTION:

INTRODUCTION Foreign Direct Investment is any form of investment that earns interest in enterprises which function outside of the domestic territory of the investor. FDIs require a business relationship between a parent company and its foreign subsidiary FDI stocks now constituting 28% of the global GDP

Definition:

Definition Foreign direct investment ( FDI ) is a direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.

Types of FDI:

Types of FDI By Direction :- 1)INWARD 2) OUTWARD By Target :- 1)Greenfield investment 2) Horizontal 3) Vertical By Motive : - 1)Resource seeking 2) Market seeking 3) Efficiency seeking

WHAT WAS THE CRITERIA FOR FDI:

WHAT WAS THE CRITERIA FOR FDI Some time in 1991-92, the then Finance Minister and present Prime Minister Dr. Manmohan Singhji referred to certain criteria for allowing Foreign Direct Investment. These were : Establishment of basic industries requiring huge capital and advanced sophisticated technology. Infrastructure projects like electricity generation road building etc. Projects which would generate employment

FDI REGIME:

FDI REGIME CONTRACT FARMING COLLECTION OF AGRICALTURE PRODUCTS TO OWN FACTORY TO OWN DEPT. STORE TO CUSTOMER

FDI Flow by Region:

FDI Flow by Region

FDI IN WORLD :

FDI IN WORLD Increased by 5.1% and stood at US $947 bn in 2007 Number of projects 11,574 (2007) Top 10 destinations for FDI China, US, India, UK, France, Germany, Russia, Spain , Poland and Romania.

Government policy:

Government policy FDI permitted in almost all activities‡ upto100% FDI allowed in manufacturing Approval given by Foreign Investment Promotion Board Under automatic route Under government approval Prohibited sectors FDI policy notified by RBI under Foreign Exchange Management Act FEMA

PowerPoint Presentation:

Forbidden Territories – Arms and ammunition. Atomic Energy. Railway Transport. Coal and lignite. Mining of iron, manganese, chrome, gypsum, sulphur , gold, diamonds, copper, zinc.

Advantages:

Advantages Economic development of the host Transfer of technology Development of human capital resources Creation of jobs Opening export window

Disadvantages:

Disadvantages Company may lose ownership Difference in language and culture Country secrets may be disclosed Policies adapted may not be appreciated

Conclusion:

Conclusion As the India has passed the bill on FDI in the assembly, despite of all advantage and disadvantage of the FDI, although FDI is the contemporary shouting of the world we have to wake up and ensure one thing that any one another country is not harming our “soneki chidiya” by violating the constitutional policies and ethics.

Thank you:

Thank you

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