fdi deck - vamshi

8/7/2019 FDI Deck - Vamshi

1/11

Welcome Friends

Presenter Vamshi & savithri

(VVIT)

Foreign Direct Investment (FDI)


2/11

Foreign Direct Investment (FDI)

Definition:

The foreign direct investment definition says the direct

investments in any productive assets in a country by any

foreign company is called foreign direct investment or FDI.

FDI includes investments in the infrastructure development

projects including construction of bridges and flyovers,

finance sector including banking and insurance services ,

real estate development , retail sector etc.


3/11

FDI is permited as under the following forms

of investments.

Through financial collaborations.

Through joint ventures and technical collaborations.

Through capital markets via Euro issues.

Through private placements or preferential allotments


4/11

FDI is not permitted in the following

industrial sectors:

Arms and ammunition.

Atomic Energy.

Railway Transport.

Coal and lignite.

Mining of iron, manganese, chrome,

sulphur, gold, diamonds, copper, zinc.


5/11

FDI Inflows in India-

Sector-wise analysis of Top twenty (20) sectors

in India from April 2000 Dec 2010

Industrial Sectors in India Amount of FDI inflow % of total FDI

inflowsRs. Millions

Service Sector 1015269 21.63

Computer Software and Hardware 423529 9.02

Telecommunication 398094 8.48

Housing and Real Estate 352550 7.51

ConstructionActivities 327195 6.97 Power 200993 4.28

Automobile Industry 197634 4.21

Metallurgical Industry 131178 2.79

Pertoleum and Natural Gas 112617 2.40

Chemicals 108251 2.31

Electrical Equipments 94888 2.02

Trading 87001 1.85

Hotel and Tourism 80355 1.71

Information and Broadcasting 79569 1.70

Cement and Gypsum Products 74579 1.59

Drugs and Pharmaceuticals 72533 1.55

Agriculture 71231 1.52

Consultancy 68354 1.46

Ports 66675 0.93

Food Processing Industries 43884 0.77


6/11


7/11

Foreign Investment Opportunities in India

Sector-wise break-up of FDI is as follows: fuels -26.7%,

telecom-19.6%, electrical equipments-9.9%, transportation-7.5%, services-6.5% and metallurgical industry-5.3%

Major FDI destinations are Maharashtra-17.4%,

Delhi-12%,

Tamilnadu-8.6%,

Karnataka-8.2%,

Gujarat-6.5%, and

Andhra Pradesh- 4.6%.

- MNCs invested in India include GE, Dupont, Eli Lily ,

Monsanto, Caterpillar, GM, Hewlett Packard, Motorola, BellLabs, Daimler Chrysler, Intel, Texas Instruments, Cummins,

Microsoft, IBM, Toyota, Mitsubishi, Samsung, LG, Novartis,

Bayer, Nestle, Coca Cola and McDonalds.


8/11

FII investment increased by almost ten times in 2003 reaching

a record US$ 7.59 billion, as against a mere 739 million dollars

in 2002. FII investment in the first quarter of 2004 stood at $ 4

billion. Cumulative FII investment since the equity market was

opened in the early 1990s is $ 25 billion. The number of

registered FIIs in India is 540.

CALPERS (California Public Employees Retirement System ),

the world's biggest pension fund with a base of US$ 165 billion

has recently decided to include India in their list of countriesfor investment.

- US$ 6.5 billion of the FII funds in 2003 went into equities FIIs

have 50 percent stake in one third of the 30 companies which

make up the BSE-30 Index and hold about 10 percent of the

stakes in public sector undertakings.

The other major investor countries are Mauritius,

UK, Japan, South Korea, Germany, Netherlands, Australia,

France, Malaysia, Singapore and Italy in that order.


9/11

Challenges faced by FDI in INDIA

Resource challenge

Equity challenge

Political Challenge

Federal Challenge

India must also focus on areas of poverty reduction, tradeliberalization, and banking and insurance liberalization. Challengesfacing larger FDI are not just restricted to the ones mentionedabove, because trade relations with foreign investors will alwaysbring in new challenges in investments.


10/11

Conclusion

FDI is beneficial to Indias growth and Indias growth is beneficial for FDI. India

needs to create a talent pool suitable for the investors and it needs to

develop infrastructure that will encourage the investors. These steps taken by

India to bring FDI will also help India to grow on its own. FDI if monitored and

nurtured in such a way that it will bring more skills and resources to India willbe mutually beneficial.


11/11

Thank You.

fdi deck - vamshi

Documents