Fdi Final Presentation

IMPACT OF FDI ON INDIAN ECONOMY

IMPACT OF FDI IN INDIAN ECONOMY INTRODUCTION TO FDI:

Foreign Direct investment is the investment, which is made to serve the business interests of the investor in a company, which is in a different nation distinction from the investor’s country of the origin.

CLASSIFICATIONS OF FDI: There are different types of FDI they are Inward FDI Outward FDI Greenfield FDI Mergers & Acquisition Horizontal FDI Backward FDI Vertical FDI and Forward Vertical FDI.

ADVANTAGES OF FDI:

 FDI develops the economy of both host and

home country.

 FDI permits the technology transfers.  Employee

operations.

enrichment

in

training

and

 It creates new jobs and advanced technology.  It pays an avenue to receive the funds in lower

rate of interests.

DISADVANTAGES OF FDI:

 There is a chance to spread the national secrets.  The host country workers may dissatisfy with

the policies.

 Problem in language and culture.  Size and condition of the market to the

advanced technology.

 Government faces the problem to control the

operations of host country FDI.

INTRODUCTION TO ECONOMY:

Orderly arrangement and management of the internal affairs of a state or of any establishment kept up by production and consumption; esp., such management as directly concerns wealth; as, political economy.

INDIAN ECONOMY AN OVERVIEW:

In recent days India is the best performer in world economy, but rising inflation is the greater challenge. The rising costs of oil, food and the resources needed for India’s construction boom are all playing a part. Government hopes on India’s homebred companies. As well as taking over the domestic reins.

SECTOR - WISE CONTRIBUTION TO ECONOMY:

Every sector contributing its best to the Indian economy but the major impact is from the agriculture as per the quota “Backbone of India is Agriculture” retail and service sector. INFLATION IN INDIA:

It’s the crucial period for India on inflation due to high in oil prices the inflation rate touches the limit of sky where ever seen before this last one decay. Government taking necessary steps to cut shorts it.

ROLE OF FDI ON INDIAN ECONOMY:

FDI plays a major role in Indian economy, FDI creates lot of new opening and hike in individual salary because of it the life style get developed so automatically the growth of the economy get leveraged. During the year 1990 the GDP rate was 4.9% and the FDI was US$ 97 million, the year 2008 the GDP rate is 8.7% and the FDI is US$ 20.10 billion so its clearly shows us that there is a huge impact of FDI for the growth of Indian economy. The flow of FDI also increased gradually year after year from 2001 the FDI was 15.48 billion US$ and in 2007 it is 20.10 billion US$.

CONCLUSION:

The growth of economy was not commendable before 1991, after implementing LPG (Liberalization, Privatization & Globalization) there is a tremendous growth in Indian economy due to flow of foreign investment and opportunities provided in India to receive it. According to me FDI plays a major role to develop the Indian economy but to safe guard the Indian SMEs the government can reframe the FDI policies or the FDI can put its eyes on technology transfer.