Ashok fdi
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Foreign direct investment refers to investments made by companies or entities based in one country into companies or entities based in another country. Open economies that have skilled workforces and good growth prospects tend to attract more foreign direct investment than closed economies. Companies make foreign direct investments to gain access to new markets, expand their business internationally, increase their global competitiveness, and reduce costs through activities like research and development or production in other countries.
Ashok fdi
- 1. Foreign Direct Investment Ashok Kumar . S PGPM, MBA SMI Business School 3/8/2013 1:38 AM 1
- 2. Meaning An investment made by a company or entity based in one country, into a company or entity based in another country. Foreign direct investments differ from indirect investments such as invest in equities listed on a nation's stock exchange. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies. 3/8/2013 1:38 AM 2
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- 4. Why FDI? Gain a new geographic market To expand business in different countries Increase a firm¨s global competitiveness and positioning Fill gaps in a company¨s product lines in a global industry Reduce costs in areas such as R&D, production, and distribution 3/8/2013 1:38 AM 4
- 5. Merits of FDI Being a part of BRICS nation Large and growing market Cost-effective and highly skilled labor Employment opportunity will increase Billion dollars will be invested in Indian market Spread import and export business in different countries Agriculture products will get good price 3/8/2013 1:38 AM 5
- 6. Demerits of FDI Home market will effect Inflation rate will increase An economically backward class person suffers from price raise Retailer faces loss in business Market places are situated too far which increases traveling expenses Workers safety and policies are not mentioned clearly Again India become slaves because of FDI 3/8/2013 1:38 AM 6
- 7. Prohibited areas of FDI Gambling and betting Lottery business Atomic energy Housing and real estate Agriculture 3/8/2013 1:38 AM 7
- 8. Limits of FDI in India Insurance C 26% Domestic airlines C 49% Telecom services- Foreign equity 74% Private sector banks- 74% FM Broadcasting - foreign equity 20% Defense production C 26% 3/8/2013 1:38 AM 8
- 9. Limits of FDI in India (´ cont) News and current affairs- 26% Broadcasting- cable, DTH, up-linking C foreign equity 49% Single Brand retailing C 51% Tea plantation C 100% Courier services- 100% 3/8/2013 1:38 AM 9
- 10. TELECOM FDI in basic and cellular, unified access services, national/ international long distance V-Sat, public mobile radio trunk services , global mobile personal communications services - Automatic up to 49% - FIPB beyond 49% but up to 74% Manufacture of telecom equipments - Automatic up to 100%. 3/8/2013 1:38 AM 10
- 11. DOMESTIC AIRLINES FDI up to 49% (40%) permitted under automatic route Automatic Route is not available However, a foreign airlines are not allowed to have any direct or indirect equity participation 100% investment by NRIs/OCB¨s 3/8/2013 1:38 AM 11
- 12. INSURANCE FDI up to 26% allowed on the automatic route However, license from the Insurance Regulatory & Development Authority (IRDA) has to be obtained There is a proposal to increase this limit to 49% 3/8/2013 1:38 AM 12
- 13. PRINT MEDIA FDI upto 100% in publishing/printing scientific & technical magazines, periodicals & journals FDI upto 26% in publishing news papers and periodicals dealing in news and current affairs. All investments are subject to the guidelines issued by the Ministry of Information and Broadcasting 3/8/2013 1:38 AM 13
- 14. Why in India Fourth largest Largest Economy democracy C (PPP) - A safe political stability place & consensus on to do business reforms Largest Liberal & reservoir of transparent skilled investment manpower policies Long-term sustainable Second Largest Competitive Emerging Market advantage - High growth rate economy 3/8/2013 1:38 AM 14
- 15. Global Business Leaders on India ＾India is a developed country as far as ＾India can be the test intellectual capital is bed for developing concerned￣ solutions for the poorest nations. ￣ JACK WELCH, GE GERARD KLEISTERLEE , PHILIPS ＾India is handling the ＾India has evolved into most sophisticated one of the world¨s projects in the world. I leading technology am impressed with the centres. ￣ quality of work￣ CRAIG BARRET, INTEL BILL GATES, MICROSOFT 3/8/2013 1:38 AM 15
- 16. FDI after Liberalization 3/8/2013 1:38 AM 16
- 17. Global Leaders from India 3rd largest producer of Largest producer One of the top IT optical storage media in the of motorbikes in Services company in world the world the world World¨s largest tube World¨s largest based television refinery plant manufacturer Amongst top 3 truck manufacturers in the world World leader in viscose World¨s largest staple fibre and 3rd largest World¨s 2nd largest forging producer of terry- producer of insulator company with outsourcing to towels major car manufacturers 3/8/2013 1:38 AM 17
- 18. Any questions 3/8/2013 1:38 AM 18
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