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PRESENTED BY:ABID

BEAUTIVICTORIA

ANILKUMAR

FOREIGN DIRECT

INTVESTMENT

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DefinitionClassification of FdiBenefits of Fdi

Disadvantages of FdiDeterminants of FdiFDI policiesStrategies for foreign investorStrategies for Indian investorsData regarding current Fdi policy

CONTENTS

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Investment is the flow of funds onedestination to another, for any activity,including industrial development,infrastructure and manufacturing.

It is the establishment of an enterprise by aforeigner.

Its definition can be extended to includeinvestments

made to acquire lasting interest in enterprises

operating outside of the economy of theinvestor.

DEFINITION

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Broadly classified broadly classified into two types:OUTWARD FDIS

INWARD FDIS

An outward-bound FDI is backed by thegovernment against all types of associated risks.

Factors encourage inward FDIs include interestloans, tax breaks, grants, subsidies, and theremoval of restrictions and limitations.

CLASSIFICATON OF FDI

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Capital TechnologyMarket access

Increase in domestic investmentExport promotionGenerating employmentInfrastructureSocial effectsSpillover

BENEFITS OF FDI

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Inconvenienced when negatively affected The defense of a country has faced risksNot appreciated by the workers of the recipient

countryA company may lose out on its ownership to an

overseas companyGovernments of the host country are facing

problems with foreign direct investment

DISADAVANTAGES OF FDI

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Growth prospects of the economy of thecountry

Population of a country plays an important roleHuman resources in a countryInexpensive labor forceInfrastructural factors

Transparency of the legal frameworks

Dimensions of the host countryHigh per capita income

DETERMINANATS OF FDI

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Two broad objectives to promote the investment opportunities to the

overseas investors strike a balance between the overseas and local

investors.

SALIENT FEATURES Agriculture and plantations excluding tea

plantations Real estate business Retail trade in any form Security services

FDI POLICIES

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STRATIGIES FOR FOREIGNINVESTORS TO INVEST IN INDIA

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CONTD

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STRATEGIES FOR INDIANINVESTORS TO INVEST IN FOREIGN

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FDI COMPARISON

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R a n k s

Country-0 0 8 0 9

( o r A p r i l)0 0 8

C u m u l a t i v e(n f l o w s A p r i

-0 0 A p r i l)9

% g e w i t ht o t a lI n f l o w s

1 MAURITIUS ,5 183( , )295,115 556

( , )6 930. %4 26

2 . . .S A 799( )00 ,20 757 ( , )733 . %95

3 SINGAPORE ,1 653( )13,19 778

( , )770. %58

4 . .K 190

( )8,19 254 ( , )410 . %38

5 NETHERLANDS18

( ),11 939

( , )709. %57

6 JAPAN 59( )5,9 395

( , )141. %60

7 GERMANY 202( )0,6 940

( , )594 . %66

SHARE OF TOP INVESTINGCOUNTRIES FDI EQUITY INFLOWS

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Political stability and a strong policy to protectinvestors

Safety and securityInvestment protection through legal provisionsProactive government policiesContinuous infrastructural developmentBanking system with updated technologyHigh productivity of the labour forceAvailability of raw material, components and

consumablesAmple potential opportunities for products in the

neighboring countries.

STEPS TO ATTRACT FDI

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THANK YOU