the impact of fdi in india
TRANSCRIPT
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KRISHNA PRIYA 912
2ND SEM BCOM J
FOREIGN DIRECTINVESTMENT
IMPACT
OF FDI ON
ECONOMY
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Definition
Advantage of FDI Factors Influencing FDI
Origin of Statistical Data
Measures To Attract FDI
Attracting Foreign Capital Results Encouraging
Destination India
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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
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Advantages of FDI
Infrastructure &Technology transfer
Increased productive
efficiency due tocompetition frommultinational
subsidiaries
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Advantages of FDI
Improvement in the quality ofthe factors of production
Inflow in investment fund (Tofill the gape..)
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Advantages of FDI
Faster growth of output and
employmentConsumer benefits
[1]Price [2] quality
[3] varietiesIncrease in exports
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Factors Influencing FDI
This factors Influencing FDI can
be divided into three subfactors.
1)Supply Factors
2)Demand Factors
3)Government Factors
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Supply Factors Influencing FDI
Production costs
Logistics
Resource availability
Access to technology
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Demand Factors Influencing FDI
Customer Access
Follow clients Follow rivals Exploitation of competitive Advantage
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Govt Factors Influencing FDI
Economic priorities
Avoidance of trade barriers
Economic
Development incentives
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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
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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
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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.
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How can FDI be betterapplied tosustainable developments?
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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
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RESULT ENCOURAGING TO FDI
THE RESULT OF ALL THESE
EFFEORTS ARE ENCOURAGING .
THE IN FLOWOF FOREING CAPITALHAS BEEN STEADILY RISING FROM
YEAR TO YEAR
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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.
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Industries attracting foreign direct
investment in Karnataka are:
Information technology
Cement Food processing industries
Automobiles
Pharmaceuticals Electronics & communications
Apparel
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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.
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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.
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