Current Issues in Fdi(2)

8/8/2019 Current Issues in Fdi(2)

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CURRENT ISSUES INFDI

GROUP - 10

TEAM MEMBERS:

VENKATESH K

VINEETH P

WILLIAM ROBERT

PAVALA BALAN K

SABREEN SULTHANA

MD. ZAHIR UVAIS


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FOREIGN DIRECT INVESTMENT

long term participation by country A into country B

management,

joint-venture,

transfer of technology and

expertise


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two types

inward foreign direct investment and

outward foreign direct investment

resulting in a netFDI inflow


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HISTORY

launch of "Manmohanomics" by the Narasimha Rao

government in 1991

transform "under-developed" India into an

advanced nation with a "modern" infrastructure.

But is FDI - truly the panacea for the ills of the

Indian economy?


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CRITICS

select companies have seen rise in their stock prices,

while other Indian manufacturing companies

suffered low valuations

enabled trans-national giants like Coke and Pepsi

to set up monopolies in highly profitable sectors

even in the power and telecom sectors, FDI has

come at a very heavy price.


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FDI in INDIA

development of the Indian economy

financial stability,

growth and development.

India has continually sought to attract FDI from the

worlds major investors


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not permitted in

arms,

nuclear,

railway,

coal & lignite or mining industries.

permitted through financial collaborations,through private equity


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Projects announced in the area of:

electricity generation,

distribution and transmission,

development of roads and highways,

100% of the financing allowed for the construction ofbridges and tunnels, but with a limit on

foreign equity of INR 1,500 crores, (approx $352.5m.)


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INDIA

India ranked third place in global foreign direct

investments

- according to UNCTAD - JULY2009.

India is the second most promising country for

overseas business operations, after China.

- JAPAN BANK for International conference survey NOV 09.


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In India the top three countries where British

companies can do better business during 2012-14.

- Leeds University Business School Feb 2010

India is the 4th most attractive foreign direct

investment (FDI) destination in 2010.

Canadian firms are now focussing on India as an

investment destination.


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SECTORS ATTRACTING HIGHEST FDI EQUITY

INFLOWS: 2010 - 2011

Service Sectors - Rs 9933 Crs. (21%)

Computer H/w & S/w - Rs 556 Crs. (9%)

Telecommunications - Rs 1026 Crs. (8%) Real Estate - Rs 713 Crs. (7%)

Construction Activites - Rs 718 Crs. (7%)

Power - Rs 729 Crs. (5%)

Automobiles - Rs 436 Crs. (4%)

Petroleum - Rs 529 Crs. (3%)


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ENTRY STRATEGIES FOR

FOREIGN INVESTOR :

Foreign Company has the following options to set up business

operations in India :

By incorporating a company under the Companies Act,

1956 A wholly owned subsidiary

Joint venture company - existing company or new

company with domestic partner

As an unincorporated entity Liaison Office

Project Office

Branch Office


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SHARE OF TOP INVESTING COUNTRIES FDI EQUITY

INFLOWS (Financial years): 2010-2011

MAURITIUS - Rs 4480 Crs, (42%)

Singapore - Rs 1282 Crs, (9%)

U.S.A - Rs 908 Crs, (7%)

U.k - Rs 348 Crs, (5%)

Netherlands - Rs 762 Crs, (4%)


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CONCLUSION

Thus the government of India realized the fact

that foreign direct investment plays a very

crucial role in boosting the country's economy

by developing the infrastructure, generating

new jobs, transfer of technology, and

increasing productivity.


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THANK YOU LISTENERS

HAVE A WONDERFUL 2011

ALL THE BEST

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Current Issues in Fdi(2)