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FDI IN INDIA BY-HONEY MITTALECE-

DEFINITIONFDI is direct investment into production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.

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TYPES OF FDI Horizontal FDI arises when a firm duplicates its home

country-based activities at the same value chain stage in a host country through FDI.

Platform FDI Foreign direct investment from a source country into a destination country for the purpose of exporting to a third country.

Vertical FDI takes place when a firm through FDI moves upstream or downstream in different value chains i.e., when firms peform value-adding activities stage by stage in a vertical fashion in a host country.

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METHODS OF INVESTING IN INDIA

 Automatic Route FDI is allowed under the automatic route without prior approval either of the Government or the Reserve Bank of India in all activities/sectors as specified in the consolidated FDI Policy, issued by the Government of India from time to time.

Government Route FDI in activities not covered under the automatic route requires prior approval of the Government which are considered by the Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of Finance.

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THINGS NOT UNDER AUTOMATIC & GOVERNMENT ROUTE

Atomic Energy Lottery Business Gambling and Betting Business of Chit Fund Agricultural Housing and Real Estate business

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6FACTS New Delhi And Mumbai are two major cities where FDI

inflows is heavily concentrated. A recent UNCTAD survey projected India as the second

most important FDI destination, after China, in 2010-12. Highest FDI was recorded in the services,

telecommunication, construction activities and computer hardware and software and hospitality sectors.

 Leading sources of FDI for India are Mauritius, Singapore, United Kingdom and Japan.

Advantages of FDI Competitive advantages and innovation Inflow of equipment and technology Billion dollars will be invested in Indian market Employment generation Improved consumer welfare through reduced cost,

wider choice & improved quality. Provide access to global markets for Indian producer.

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Disadvantages of FDI Small retailers and other ‘Kirana Stores’ may

close down. Domestic companies may lose their ownership

to overseas companies. Effect on culture.

FDI in retail will drain out the country’s share of revenue to foreign countries, which may cause negative impact on India’s economy

)    .

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CONCULSIONCONSIDER THESE ALL

ASPECT FINALLY I CONCLUDE THAT FDI IS

IMPORTANT FOR COUNTRY

DEVELOPMENT.

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REFERENCESGOOGLE.COMWIKIPEDIA.COMRBI.ORG.IN

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11THANK YOU