MACRO ECONOMICS ENVIRONMENT

IMPACT OF FDI ON INDIAN ECONOMY

1MACRO ECONOMICS1MACRO ECONOMICS2CONTENTSFDIBENEFITS OF FDIFDI IN INDIAIMPACTS OF FDI ON INDIAN ECONOMYFACTS

MACRO ECONOMICS3FDI FDI is a type of investment that involves the injection of foreign funds into an enterprise that operates in different country of origin from the investorsIt usually involves participation in management , joint venture ,and transfer of technology and expertiseFDI can be classified into:-Inward FDI & Outward FDI3MACRO ECONOMICS4Benefits of FDIEconomic growthTradeLinkages and spillover to domestic firmEmployment and skill levelTechnology diffusion and knowledge transferMACRO ECONOMICS5FDI in IndiaA recent UNCTAD Survey Projected India as the second most important FDI destination for transactional corporation during 2010-2012The Sector which attracted higher inflows were services ,telecommunication , construction activities and computer software and hardwareMauritius , Singapore , U.S and the U.K were among the leading source of FDI. MACRO ECONOMICS6

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MACRO ECONOMICS12IMPACT ON INDIAN ECONOMYFDI has an important impact on countrys trade balances , increasing labor standard and skills, transfer of technology , skill and the general business climate.FDI also provide an opportunity for- -Technological transfer and up gradation , -Access to global managerial skills and practices -Optimal utilization of human capabilities and natural resources, -Making industry internationally competitive and augmenting employment opportunity MACRO ECONOMICS13Indias share in global FDI has increased considerably, but the pace of FDI inflow has been slower than China , Russia , Singapore and Brazil

Indian economy is highly agriculture based and here is plenty of scope in food processing, agriculture service and agriculture machinery. FDI in this sector should be encouragedMACRO ECONOMICS14FACTS49% FDI is allowed in aviation sector in IndiaMauritius has been the largest investor in India($20 billion)US is the second largest investor in IndiaUS is the worlds largest recipient of FDIMumbai and New Delhi are two major cities, where FDI inflows is heavily concentratedMACRO ECONOMICS15

MACRO ECONOMICS16FDI INFLOWS FOR FY 2012-13FY-12-13In croresIn US $April , 20129,6201857May , 201272291327June ,201269711244July , 201281821474August , 2012125782264445808166MACRO ECONOMICS17MACRO ECONOMICS18THANK YOU