What is FDI ?Foreign direct

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

When did this start in INDIA?Foreign investment was

introduced in 1991 under Foreign Exchange Management Act (FEMA), driven by then finance minister Manmohan Singh.

India disallowed overseas corporate bodies (OCB) to invest in India.

Where does India stand?India has been ranked at the

second place in global foreign direct investments in 2010 and will continue to remain among the top five attractive destinations for international investors during 2010-14 period.

From where are we getting this?

MAURITIUS SINGAPORE U.K JAPAN U.S.A NETHERLANDS CYPRUS GERMANY FRANCE U.A.E

In which Industry did they invest?

How has it been growing? - 1

How has it been growing? - 2 Foreign direct investment (FDI)

in India has increased by about 35 per cent to $13.6 billion during the first half of 2013 with merger and acquisitions accounting for the bulk of inflows, according to a report by the United Nations Conference on Trade and Development (UNCTAD).

Why will India want to encourage FDI?

India now with consistent growth performance and abundant high-skilled affordable manpower provides enormous opportunity for investment both domestic and foreign. Foreign direct investment (FDI) causes a flow of money into the economies which stimulates economic activity, increases employment and induces the long run aggregate supply and brings in best practices.

Why should India not encourage it?Investment of a foreign company with its

new technologies and products has several disadvantages for local businesses.

New products arriving at lower prices create competition and force local businesses to lower their prices and reorganize their operations in terms of costs.

Local businesses may lose their customers or even their business relations with other companies as they start cooperating with the new foreign one

Where are we heading?In view of the above analysis, I believe

that India will be one of the most attractive nation to invest in.

2008 2011 2013 20180

0.2

0.4

0.6

0.8

1

1.2

1.4

0.35

0.59

0.83000000000000

1

1.3

Expected Growth

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