...FDI policy – Indian Perspective 11th September 2007 Macro-economic Overview Sustained Economic growth • Growth of over 8.0% during last 3 years • Fourth largest economy in the world in PPP terms Services account for over 50% of GDP Manufacturing sector growing annually at over 9% (17.4% in GDP) Foreign exchange reserve of over US $ 200 billion FDI inflows grew by 72% in 2005-06: the growth in 200607 was 184%. FDI inflows continue to be impressive this year as well with US$ 4.9 billion already recorded for the first quarter of 2007-08 India- Advantages as a destination for FDI Young Demographic Profile- 54% population below 25 years Abundant availability of Skilled Human Resources Adequate natural resources and raw materials Large and growing domestic market Established rule of law and a vibrant three tiered democracy Economic Reforms Industrial Policy Reforms • Compulsory licensing limited to only 5 sectors: on security, public health & safety considerations and where items are reserved for the SSI sector • FDI policy liberalisation since 1991calibrated progressive liberalisation followed • Technology collaboration liberalised Liberalization of FDI Policy New sectors opened FDI up to 100% allowed in most sectors FDI up to 100% allowed in some sectors FDI up to 74/51/50% allowed In 111 sectors Only a small negative list FDI limits Increased Procedures Further simplified Automatic Route introduced FDI up to 51% Allowed In 35 priority sectors FDI Allowed...
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...FDI IN INDIA: COUNTRY-WISE AND SECTORAL ANALYSIS Abstract: Foreign investment is a subject of topical interest. Countries of the world, particularly developing economies, are vying with each other to attract foreign capital to boost their domestic rates of investment and also to acquire new technology and managerial skills. Intense competition is taking place among the fund starved less developed countries to lure foreign investors by offering repatriation facilities, tax concession and other incentives. However. Foreign Investment is not an unmixed blessing. Governments in developing countries have to be very heedful while deciding the magnitude, pattern and conditions of private foreign investment. The wave of liberalization and globalization sweeping across the world has opened many national markets for international business. It is stated that FDI has to play a novel role in the world economy. The role of FDI has now transformed from a tool to solve the financial crises to a modernizing force. In past liberalization regime India has experienced tremendous growth in FDI inflows from an average of US $5-6 billion during previous five years; it has crossed the level of US $30 billion. But it still receives far less FDI flows than China and the USA or much smaller economies in Asia like Hongkong and Singapore in terms of GDP or Gross Fixed Investment. IT is not surprising, As India’s growth strategies have been reliant primarily on domestic enterprises; Mindset has changed...
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...Foreign Direct Investment in India India is the largest democracy and is fourth largest economy (in terms of purchasing power parity) in the world. India with its consistent growth performance and abundant high-skilled manpower provides enormous opportunity for investment, both domestic and foreign. Investment in India can be made both by non-resident as well as resident Indian entities. Any non-resident investing in an Indian company is Foreign Direct Investment (FDI). The Government embarked upon major economic reforms since mid-1991 with a view to integrate with the world economy, and to emerge as a significant player in the globalization process. Reforms undertaken include decontrol of industries from the stringent regulatory process; simplification of investment procedures, promotion of foreign direct investment (FDI), liberalisation of exchange control, rationalization of taxes and public sector divestment. The FDI policy was liberalized progressively through review of the policy on an ongoing basis and allowing FDI in more industries under the automatic route. A number of studies in the recent past have highlighted on growing attractiveness of India as an investment destination. According to UNCTAD’s World Investment Report 2007, India is the second most attractive investment destination for FDI for 2007-09. India has one of the most liberal and transparent policies on FDI among the emerging economies. FDI up to 100 percent is allowed under automatic route in all activities...
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...Online available at http://zenithresearch.org.in/ AN OVERVIEW OF FOREIGN DIRECT INVESTMENT IN INDIA SYED AZHAR*; K.N.MARIMUTHU** *Research Scholars, School of Management Studies, University of Hyderabad, AndhraPradesh-500046. ABSTRACT This paper attempted to make an analysis of FDI in India and its impact on growth. It also focuses on the determinants and needs of FDI, year-wise analysis, sectoral analysis and sources of FDI and reasons. One of the economic aspects of globalization is the fact that increasing investments in the form of foreign direct investments. In the recent times due to the global recession most of the countries have not been able to pull investments. India has been able to attract better FDI’s than the developed countries even during the crisis period also. Especially in the recent years the FDI in India has been following a positive growth rate. Since 1991 the government has focused on liberalization of policies to welcome foreign direct investments. These investments have been a key driver for accelerating the economic growth through technology transfer, employment generation, and improved access to managerial expertise, global capital, product markets and distribution network. FDI in India has enabled to achieve a certain degree of financial stability; growth and development to sustain and compete in the global economy. KEYWORDS: FDI, GDP, Growth & Development & Indian Economy. ___________________________________________________________________________ ...
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...Investment in India | The fast and steadily growing economy of India in majority of its sectors, has made India one of the most famous and popular destinations in the whole world, for Foreign Direct Investment. India's ever-expanding markets, liberalization of trade policies, development in technology and telecommunication, and loosening of diverse foreign investment restrictions, have further collectively made India, the apple of investors' eye, for most productive, profitable, and secure foreign investment. According to a recent survey by the United Nations Conference on Trade and Development (UNCTAD), India has conspicuously emerged out as the second most popular and preferable destination in the entire world, after China, for highly profitable foreign direct investment. In recent years, bulk of the foreign direct investment in indian business sectors of infrastructure, telecommunication, information technology, computer hardware and software, and hospitality services, have been made by investors of countries like US, UK, Mauritius, Singapore, and many others. Global Jurix, one of the leading full-fledged legal organizations of India with global repute, has been helping companies, business corporations, organizations, and other potential investors of countries all around the world, in making foreign direct investment in indian business sectors, in various ways described in the section below. | FDI - Inbound and Outbound | The Foreign Direct Investment (FDI), anywhere...
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...is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers. The organized retail however is at a very nascent stage. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10 per cent of India’s GDP.[2] FDI Policy in India FDI as defined in Dictionary of Economics (Graham Bannock et.al) is investment in a foreign country through the acquisition of a local company or the...
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...iosrjournals.org Contribution of Insurance Sector to Growth and Development of the Indian Economy 1 1 2 Dr. M.Subba Rao, 2R. Srinivasulu M.Com, M.Phil, Ph.D Principal Sri Balaji P.G College (MBA) Anantapur – 515002 Andhra Pradesh - India M.Com, M.B.A Research Scholar Department of Commerce S.K University – Anantapur Andhra Pradesh India Abstract: For economic development, investment are necessary, investments are made out of savings. Insurance Company is a major instrument for the mobilization of savings of people particularly from the middle and lower income groups. These savings are channelized into investment for economic growth. Insurance serves a number of valuable economic functions that are largely distinct from other types of financial intermediaries. According to the official estimates, Indian economy is expected to grow at 7.6% (+/- 0.25%) in the fiscal year 2012–2013. However, leading financial organizations and economic think-tanks expect Indian economy to grow slower than official projections. The economy of India is the tenth-largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). The country is one of the G-20 major economies and a member of BRICS. On a per capita income basis, India ranked 140th by nominal GDP and 129th by GDP (PPP) in 2011, according to the IMF. Fortunately, in the past few years, several interesting lines of research have begun to map the specific contributions of insurance to the economic growth process...
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...conviction that I have immensely benefited from the allotment of this topic. Contents S. No. Topic Page 1. Abbreviations 2. Table of Cases 3. Table of Statutes 4. Research Methodology 5. Introduction 6. Jurisprudential Study 7. Analysis on Indian Legal Provisions 8. Comparative Study 9. Conclusion 10. Suggestions 11. Bibliography Table of Abbreviations Sr.No Keyword Meaning 1 SC Supreme Court 2 HC High Court 3 IPC Indian Penal Code 4 Sec Section 5 v versus 6 www World wide web 7 i.e That is 8 etc Etcetera Table of Cases and Statutes Case Laws 1) Naz Foundation v Government of NCT of Delhi 2) Smt. Sarla v Mahendra Kumar 3) K.A. Abbas v Union of India 4) Aruna Shanbaug v Union of India 5) Ram Chandra Bhagat v State of Jharkhand 6) D. Veluswamy v D.Patchaiammal Acts/Conventions 1) The Indian Penal Code, 1860 2) The Protection of Women from Domestic Violence Act, 2005 3) Code of Criminal Procedure Act, 1973 4)...
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...FDI in Retail India: Impact on Farmers, Consumers and Industry Nilesh Kate, Research Scholar Sinhgad Institute of Management and Computer Application, Pune nileshkate503@gmail.com 9096714133 ****************************************************************************** Abstract: The retail sector in India is expanding and modernizing rapidly in line with India's economic growth. It acts as a major catalyst in the development of a country through up-gradation of technology, managerial skills and capabilities in various sectors. Rise in purchasing power, growing consumerism and brand proliferation has led to retail modernization in India. The growing Indian market has attracted a number of foreign retailers and domestic corporate to invest in this sector. FDI in the retail can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers and suppliers (farmers). The overall retail market (organized and unorganized) is expected to grow at a compounded rate of 15% over the next 5 years from INR 23 trillion in 2011-12 to INR 47 trillion in 2016-17. Rising incomes will be the primary driver of this growth. Favorable demographics, increasing urbanization and nuclearisation of families are other factors which will drive retail consumption in India. Organized retail, which constituted a low 7% of total retail in 2011-12, is estimated to grow at a CAGR of 24% and attain a 10.2% share of total retail by...
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...FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN INDIA R. ANITHA* *Assistant Professor, Anna Adarsh College for Women, Chennai, Tamil Nadu, India. ABSTRACT Foreign Direct Investment (FDI) plays a very important role in the development of the nation. It is very much vital in the case of underdeveloped and developing countries. A typical characteristic of these developing and underdeveloped economies is the fact that these economies do not have the needed level of savings and income in order to meet the required level of investment needed to sustain the growth of the economy. In such cases, foreign direct investment plays an important role of bridging the gap between the available resources or funds and the required resources or funds. It plays an important role in the long-term development of a country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities. In India, FDI is considered as a developmental tool, which helps in achieving self-reliance in various sectors and in overall development of the economy. India after liberalizing and globalizing the economy to the outside world in 1991, there was a massive increase in the flow of foreign direct investment. This paper analyses FDI inflow into the country during the Post Liberalization period. Further, the trends of FDI inflow into the country are projected for a...
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...Contents Introduction 3 Literature review 4 Research methodology 9 Analysis 11 Case study: Tata’s Croma 16 Findings 20 FDI in Retail in India 21 Growth drivers in India for retail sector 22 Discussion 23 FDI in INDIA SECTOR WISE 23 Conclusion 25 Bibliography 27 Introduction Foreign Direct Investment (FDI) is fund flow (inflow/outflow) between the countries wherein one gains benefit from their investment whereas another can exploit the opportunity to enhance the productivity and find out better position through performance. Foreign Direct Investment (FDI) is the flow of funds between countries wherein one country reaps benefits from the investments and the other can make the most of the opportunity to improve the productivity and stabilize their position through performance. The Dictionary of Economics has defined FDI as investment in an overseas country through the acquisition of a company there of an operation on a new site. In other words, the capital inflows from abroad that is invested in to improve the production capability of the economy. Two forms of FDI: * Inward FDI * Outward FDI FDI is an important factor for growth and development in both developed and developing countries. FDI has seen a spectacular growth in the last two decades globally. Policies are formulated in order to accelerate inward flows. FDI provides good opportunities and benefits for both the host and home countries in terms of investments. The “home” countries benefit...
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...Nayak D.N (2004) in his paper “Canadian Foreign Direct Investment in India: Some Observations”, analyse the patterns and trends of Canadian FDI in India. He finds out that India does not figure very much in the investment plans of Canadian firms. The reasons for the same is the indifferent attitude of Canadians towards India and lack of information of investment opportunities in India are the important contributing factor for such an unhealthy trends in economic relation between India and Canada. He suggested some measures such as publishing of regular documents like newsletter that would highlight opportunities in India and a detailed focus on India’s area of strength so that Canadian firms could come forward and discuss their areas of expertise would got long way in enhancing Canadian FDI in India. Balasubramanyam V.N Sapsford David (2007) in their article “Does India need a lot more FDI” compares the levels of FDI inflows in India and China, and found that FDI in India is one tenth of that of china. The paper also finds that India may not require increased FDI because of the structure and composition of India’s manufacturing, service sectors and her endowments of human capital. The requirements of managerial and organizational skills of these industries are much lower than that of labour intensive industries such as those in China. Also, India has a large pool of well – Trained engineers and scientists capable of adapting and restructuring imported know – how to suit...
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...resulting in fierce competition and accelerated pace of innovation. As a result inflow of Foreign Direct investments has become a striking measure of economic development in both developed and developing countries. FDI and FII thus have become instruments of international economic integration and stimulation. Fast growing economies like Singapore, China, Korea etc have registered incredible growth at onset of FDI. Though US captures most of the FDI inflows, developing countries still account for significant growth of FDI and rise in FII. FDI not only gives access to foreign capital but also provides domestic counties with cutting edge technology, desired skill sets, tools of innovation and other complementary skills. Apart from helping in creating additional economic activity and generating employment, foreign investment also facilitates flow of sophisticated technology into the country and helps the industry to march into advanced technology. A favorable business environment fostered Indian economy after 1991, when the government of India opened the door for foreign capital in the way of direct investment and through foreign institutional investors. The policies drafted to stimulate the flow of foreign capital in to India provided much needed impetus for India to emerge as an attractive destination for foreign investors. Consequently, the international capital inflows have been increased tremendously during last two decades. What is Foreign Direct Investment? ...
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...International Journal of Engineering and Science ISSN: 2278-4721, Vol. 1, Issue 5 (October 2012), PP 34-42 www.researchinventy.com Role of Foreign Direct Investment in India: An Analytical Study 1 Dr. Jasbir Singh,2Ms. Sumita Chadha,3 Dr. Anupama Sharma 1 Associate Professor, Maharaja Surajmal Institute, Janakpuri, Delhi Assistant Professor, Maharaja Surajmal Institute, Janakpuri, Delhi 3 Assistant Professor, Maharaja Surajmal Institute, Janakpuri, Delhi 2 Abstract: International Economic Integration plays a vital role in Economic Development of any country. Foreign Direct Investment is one and only major instrument of attracting International Economic Integration in any economy. It serves as a link between investment and saving. Many developing countries like India, are facing the deficit of savings. This problem can be solved with the help of Foreign Direct Investment. Foreign investment helps in reducing the defect of BOP. The flow of foreign investment is a profit making industry like insurance, real estate and business services and serving as a catalyst for the growth of economy in India. The present study is based on the objectives like (a) to know the requirement of amount of foreign investment by India, for its economic Development and (b) to analyze the trend and role of FDI & FIIs in improving the quality and availability of goods has been beyond doubt. To analyze all these objectives data has been gathered through secondary sources like reports...
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...Attracting Foreign Direct Investment (FDI) to India Ramkishen S. Rajana, Sunil Rongalab and Ramya Ghoshc April 2008 --------------------------a) George Mason University, Virginia, USA. E-mail: rrajan1@gmu.edu . b) International Professional Services Organization, Hyderabad, India. E-mail: sunil.rongala@gmail.com c) Claremont Graduate University, California, USA. Email: ramya.ghosh@cgu.edu We thank Rajeev Ranjan Chaturvedy for useful research assistance. The usual disclaimer applies. 2 1. Introduction Economic policymakers in most countries go out of their way to attract foreign direct investment (FDI). A high level of FDI inflows is an affirmation of the economic policies that the policymakers have been implementing as well as a stamp of approval of the future economic health of that particular country. There is clearly an intense global competition for FDI. India, for its part, has set up the “India Brand Equity Foundation” to try and attract that elusive FDI dollar. According to UNCTAD (2007), India has emerged as the second most attractive destination for FDI after China and ahead of the US, Russia and Brazil. While India has experienced a marked rise in FDI inflows in the last few years (doubling from an average of US$5-6 billion the previous three years to around US$ 19 billion in 2006-07) (Figure 1), it still receives far less FDI flows than China or much smaller economies in Asia like Hong Kong and Singapore was ahead of India (Figure 2). Not surprisingly India’s...
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