Lehar Ajwani (2) Harkesh Bansal (5) Jaimin Patwa (19) Shweta Singh (22) Puneet Vyas (27)
Difference
between the government's total expenditure and its total receipts (excluding borrowing) – Fiscal Deficit Difference between the revenue expenditure and the revenue receipts (the recurring income for the government) - Revenue deficit Fiscal Deficit – Interest payments = Primary Deficit
Foreign Direct Investment relates to direct investment in an Indian company either through a joint venture agreement or as a wholly owned subsidiary with management interest. Foreign direct investment is also permitted through the route of Global Depository Receipt/Euro issue/FCCB.
Types of FDI There are two types of FDI: Greenfield investment : It is the direct investment in new facilities or the expansion of existing facilities. Mergers and Acquisition : It occurs when a transfer of existing assets from local firms takes place.
Forbidden Territories: FDI inn India is not permitted in the following industrial sectors: Arms and ammunition. Atomic Energy. Railway Transport. Coal and lignite. Mining of iron, manganese, sulphur, gold, diamonds, gypsum, copper,
Services (US$ 9,443 million) Electrical Equipment (US$ 8,964 million) Telecommunication (US$ 4,880 million) Transportation (US$ 3,856 million) Fuels (US$ 2,892 million) Chemicals (US$ 2,465 million) Construction (US$ 1,912 million). Components (Sectors)
Mauritius (US$ 20,808 million) – 41.89% US (US$ 6,215 million) – 12.03% UK (US$ 3,979 million) – 7.98% Netherlands (US$ 2,789 million) - 5.59% Japan (US$ 2,585 million) – 5.07% Singapore (US$ 2,033 million) – 4.05% Germany (US$ 1,917 million) – 3.69% Sources (Countries)
Steel tycoon Lakshmi Niwas Mittal has pledged an investment of about US$ 20 billion for building two 12-million-tonne steel plants in the states of Jharkhand and Orissa. Vodafone, the world's second-biggest mobile firm, plans to spend US$ 2 billion a year on capital expenditure in India. Eyeing the projected 15 per cent growth in the luxury car market segment, DailmerChrysler India Pvt Ltd, makers of Mercedes-Benz cars, has decided to set up a new plant in Pune. Israeli mall developer Plaza Center NV will invest US$ 1.22 billion over the next five-seven years to set up 50 malls in India. Nokia plans to invest US$ 100 million in India in the next three years to ramp up its capacity in Chennai. US-based aircraft engine manufacturer, Pratt and Whitney, plans to invest about US$ 30 million in the Infotech and spare parts manufacturing sector.
Foreign Portfolio investment represents passive holdings of securities such as foreign stocks, bonds, or other financial assets, none of which entails active management or control of the securities' issuer by the investor. Some examples of Portfolio investment are: purchase of shares in an Indian company. purchase of bonds issued by the Indian government. acquisition of assets in India.
The Government of India in 1991 embarked on liberalisation and economic reforms with a view to bringing about rapid and substantial economic growth and move towards globalisation of the economy. As a part of the reforms process, the Government under its New Industrial Policy, for the first time, permitted portfolio investments from abroad by foreign institutional investors in the Indian Capital Market.
FIIs include Asset Management Companies Pension Funds Mutual Funds Investment Trusts as Nominee Companies Incorporated / Institutional Portfolio Managers or their Power of Attorney holders University Funds Endowment Foundations Charitable Trusts Charitable Societies Government Securities/Treasury Bills Stocks of an Indian Company