FOREIGN

DIRECT INVESTM

ENTS JENY MATHEW MCOM S3

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WHAT IS FDI ??? &

ROLE IN INDIA ??

FDI IN MAJOR

SECTORS IN INDIA

oFIN

ANCI

AL S

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R

o IN

USRA

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SEC

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o tel

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mun

icat

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ohos

pita

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and

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o FINANCIAL SECTOR o INUSRANCE SECTORo telecommunicationo hospitality and tourismo Pharmaceuticalso softwares and information technology o realestateo aviation o metrorails o film industry o Automobils

FDI IN MAJOR SECTORS IN INDIA

o LACK OF ECONOMIC STABILITY o LACK OF POLITICAL STABILITY o POOR INFRASTURCE o FOREIGN INVESTMENT REGULATIONo LACK OF TRANSPARENCY o RED TAPISUM o BRUREACRATIC PROCEDURES o INDUSTRIAL CLIMATE

IMPEDIENTS OF FDI FLOW:-

MOTIVES OF FDI FLOW

•VER

TIC

AL I

NTE

RG

RAT

ION

•FAC

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IC D

IFFE

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ENTS

o FACTOR PRICe DIFFERENCESo LARGE DOMESTIC MARKET o TECHNOLOGICAL ANOTHER KNOW-HOW o BRAND REPUTATION o CORPORATE IMAGES o PRODUCT LIFE CYCLEo HOME COUNTRY REGULATIONSo EXCHNAGE RATE FLUCATIONS o FOREIGN CLIENTS

MOTIVES OF FDI FLOW :--

o Machinery , equipment ,TECHNOLOGY FLOW o FRESH CAPITAL introduction o FOREIGN COLLABOATION AGGREMENT o 3 MILLION Employment OPPURNITYS o INCREASED TAX REVENUESo INCREASED EXPORTS AND REDUCE IMPORTS

REQUIRMENTSo INCREASED INDUSTRAILS ACTIVITYSo home Country can transfer skills and CAN EARN money o AVALIBLITY OF GOODS AT LOW PRICE

ADVANTAGES OF FDI TO HOME COUNTRY :--

o WILL AFFECT 50MILLION MERCHANTS IN INDIA .o PROFIT DISTRIBUTION ,INVESTMENT RATIOS ARE NOT FIXED o NO WORKERS SAFETY AND POLICIES ARE NOT MENTIONED .o HIGH EXPLOTATION OF MARKET .o INLFLATION MAY BE INCREASED.o SOMETIME ENAGE IN UNFAIR UNTHECIAL TRADE PRACTISE o CREATES MONOPLIES. FOREIGN PLAYERS WOULD DISPLACE

THE UNORANIZED RETAILERS BECAUSE OF THEIR SUPERIOR FINACIAL STRENGHTS

o INCREASE IN REAL ESTATE PRICES AND MARGINALIZE DOMESTIC ENTREPREUNER.

o THE ENTRY OF LARGE GLOBAL RETAILERS SUCH AS WALMARTS WOULD KILL LOCAL SHOPS AND MILLONS OF JOBS

o AGAIN INDIA will BECOMES SLAVES FOR OTHER COUNTRY s.

DIS ADVANTAGES OF FDI TO HOME COUNTRY :--

SLAVES FOR OTHER COUNTRY s. :--

LIMITATIONS :--

DISADVANTAGES OF FDI TO HOME COUNTRY :--REASONS

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HOST COUNTRY EFFECTS OF FDI

o RESOURCE TRANSFER o NEW EMPLOYMENT OPPoRtuNITYS .o favorable BALANCE OF PAYMENTS o IMPORT SUBSTITUTION o FOREIGN EXCHANGE EARNINGS

BENEFITS :--

o ADVERSE EFFECTS ON BPO o CAPITAL INFLOW FOLLOWED BY CAPITAL OUT FLOW

+ PROFITS o COMPETITION HIGH o LOSS OF ECONOMIC INDEPENDENCE o THREAT TO NATIONAL SOVERNITY AND AUTONOMY

LIMITATIONS :--

FDI STATUS IN STATES

OF INDIA• STATES

APPROVED FDI • Maharashtra• Delhi • Haryana• Rajasthan• Assam

STATES AGAINST FDI • KERALA • TAMILNADU • UTTAR PARDESH• WEST BENGAL • MADHYA PRADESH • BIHAR • ORISSA

• STATES YET NOT DECIDED

• PUNJAB • KARNATKA • ANDRA PRADESH

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CONCULSION

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THANK YOU

ALL