the impact of fdi in india

7/29/2019 the impact of fdi in india

1/21

KRISHNA PRIYA 912

2ND SEM BCOM J

FOREIGN DIRECTINVESTMENT

IMPACT

OF FDI ON

ECONOMY


2/21

Definition

Advantage of FDI Factors Influencing FDI

Origin of Statistical Data

Measures To Attract FDI

Attracting Foreign Capital Results Encouraging

Destination India


3/21

Definition of FDI

Foreign direct investment (FDI)occurs when investor based in onecountry (the home country)acquired an asset in other country(the host country) with the intentto manage the asset


4/21

Advantages of FDI

Infrastructure &Technology transfer

Increased productive

efficiency due tocompetition frommultinational

subsidiaries


5/21

Advantages of FDI

Improvement in the quality ofthe factors of production

Inflow in investment fund (Tofill the gape..)


6/21

Advantages of FDI

Faster growth of output and

employmentConsumer benefits

[1]Price [2] quality

[3] varietiesIncrease in exports


7/21

Factors Influencing FDI

This factors Influencing FDI can

be divided into three subfactors.

1)Supply Factors

2)Demand Factors

3)Government Factors


8/21

Supply Factors Influencing FDI

Production costs

Logistics

Resource availability

Access to technology


9/21

Demand Factors Influencing FDI

Customer Access

Follow clients Follow rivals Exploitation of competitive Advantage


10/21

Govt Factors Influencing FDI

Economic priorities

Avoidance of trade barriers

Economic

Development incentives


11/21

Inflow of FDI in India

2007-08 ---$15.7 billion

2006-07 --- $5.5 billion

Major player

[1] Vodafone

[2] Nokia[3] General motors

[4] suzuki

Sectors[1] services

[2] ElectricalEquipment[3] Real state[4] Transportation


12/21

Outflow of FDI from india

2007-08$15 billion

2006-07--$2.8 billion

Players

[1] Tata Groups

[2] Bhart forge

[3] Wipro[4] Infro Sys

[5] Ranbaxy

Sectors

[1] Pharmaceuticals

[2] Industrial goods,[3] Automotive components

[4] Software

[5] Metal


13/21

Measures To Attract FDI

1992 --- Foreign firms obtained automatic

rights over international brand names.1998-- FIIs-now allowed to invest in Govt

securities,listed & unlisted securities.

2000 --- 100% Foreign equity allowed ininfrastructure projects- portsroad,highways.

2002 ---Limited FDI in print media permitted.


14/21

How can FDI be betterapplied tosustainable developments?


15/21

Compare the Pro and the

Cons Develop strategies that

targets the right kind of FDI

Consider the long termeffects to the entire economyand the social well

Use of Environmental friendly

Recommendations


16/21

RESULT ENCOURAGING TO FDI

THE RESULT OF ALL THESE

EFFEORTS ARE ENCOURAGING .

THE IN FLOWOF FOREING CAPITALHAS BEEN STEADILY RISING FROM

YEAR TO YEAR


17/21

Factors attracting foreign direct

investment in Karnataka

The state government is investor friendly for it provides the facility of

single window clearance to ensure fast track approvals for foreign

investments.

The infrastructure facility that is available in the state is of world class

standard.

Good law and order situation prevails in Karnataka which is conductive

to foreign direct investments.

The state provides excellent logistic support and connectivity to the

investors

The state ranks among the top 5 industrially developed states of India.

The state provides to the investors one of the biggest and fastest

expanding markets in the country

Highly skilled manpower is abundantly available in Karnataka.


18/21

Industries attracting foreign direct

investment in Karnataka are:

Information technology

Cement Food processing industries

Automobiles

Pharmaceuticals Electronics & communications

Apparel


19/21

Amount of foreign direct

investment in Karnataka:

The total percentage of foreign direct

investment in Karnataka stood at 8% out ofthe total foreign direct investment in India

during August 1991 to May 2000. There are

more than 500 multinational companies in

the Karnataka and also over 100international R&D centers in the state.


20/21

Advantages of foreign direct

investment in Karnataka:

The advantages of foreign direct investment

in Karnataka are that it has helped togenerate employment opportunities for the

people in the state. Further the advantages

of foreign direct investment in Karnataka are

that it has led to the growth in exports fromthe state to foreign countries.


21/21

Documents

the impact of fdi in india