Foreign Direct Investment in India.

By- Sandeep Mishra (TYBBA) Akash Shah (SYBBA)

04/10/2023 2Navnirman Institute of Management

Meaning of Foreign Direct investment. (FDI)

A source of capital and investment involving foreign control of production.

A channel of technology transfer and industrial development.

A source of exploitation.

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Present Picture in India.• “India” Third largest economy in terms of

Purchasing Power Parity.• Tenth most industrialized economy.• GDP growth rate of 8.1% - Second highest in the

world.• Considerable improvement in FDI inflows.• FII inflows:

– For the period, July 2003 – Jan 2004 FII inflow has exceeded USD 7 bn, which is more than the cumulative FII inflow in the last five years.

• Still a big gap between India and China.

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Rapid FDI growth in India from 2005 onwards.

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FDI growth in line with overall investment growth - local market demand key driver.

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Growth has been driven by the services sector

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Limited FDI impact in the short-run.

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In-fact India is a relative gainer in global FDI share.

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In the long-term, continued positive outlook.

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India’s opportunity

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Seizing the opportunity

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Advantages

• Development of nation in field of technology, infrastructure, financial & whole economic growth.

• Increase in standard of living.• Availability of large market for costumers.• Increase in Quality products.• Increase of employment opportunity.• Increase in investment in domestic sectors.

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Disadvantages

• Political factors risk.• Exploitation of domestic resources.• Corruption.• Bureaucratic practice.• Technology piracy.• Difficult in quality maintenance.• Difficulty increases for home players in same

sector. For eg. Retail sectors.

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LICENCES & PERMITS INDUSTRIAL DISPUTE ACT SHOP & ESTABLISHMENT ACT COSUMER PROTECTION ACT WEIGHT & MEASUREMENT ACT PACKAGING ACT PREVENTION OF FOOD ADULTRATION

ACT

PREVENTION OF BLOCK MARKETING ACT ANTI HOARDING & PROFEELING ACT MONEY LENDING ACT PRODEND FUND ACT MINIMUM WAGES ACT ESI ACT GRATUITY ACT BONUS ACT

INEFFICIENT LABOURS

PRESENT CONDITION OF TRADERS

INSPECTOR RAJ

POLITICIAL INTERFERANCE

ANTI SOCAL ELEMENTS

WATER TAX

POWER PROBLEM

HIGH BANK CHARGES

SALES TAX

OCTROI

SERVICE TAX

WELTH TAX

PROFESSIONAL TAX

INCOME TAX

ENTRY TAX

VAT

STAMP DUTY

POOR MARKET CONDITION

PURCHASE TAX

ESSENTIAL COMMODITIES ACT

CENTRALEXCISE

FDI in Retail Trade

Fringe Benefit Tax

New Naka Complex

Cash Transaction Tax&

Quarterly ‘C’ Form

Retail Traders

TelecomAviation

Banking

Insurance

Steel

Information Technology

Infrastructure

Pharma

Mining

ProfessionalEducation

Presented By Mr. B.C.Bhartia,Nagpur.

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