Source Of Global Finance In India: Submitted By Anuradha Gupta Pgdm Bls Institute Of Management Gzb

SOURCE OF GLOBAL FINANCE IN INDIA SUBMITTED BY ANURADHA GUPTA PGDM BLS INSTITUTE OF MANAGEMENT GZB

 The various Forms of Foreign Capital Flowing into

India has helped to bring in huge amounts of FDI into the country, which in its turn has given a major boost to the Indian economy.

 market potentials in India  Fifth largest economy in the world ranking above the France, U.K, Russia, Italy  Third largest GDP in the entire continent in Asia  Second largest among emerging nation  Large untapped market with respect to the huge population

Reason to invest In India  Change in industrial policy like removal of

license except certain sectors  Foreign investment policy and automatic approval route  Foreign investment promotional board to provide the assistance to the foreign investor  Single window clearance for investor it develop secretarial for industrial assistance  And many more like SEZ FEMA etc

Historical Background  Before liberalization- closed economy for all

over the world having the protectionist perspective  After 1990- the deregulation and liberalization of the Indian economy and also increased the flow of foreign direct investment into the country 

Turn into open economy for all over the world

Meaning of capital

source of capital in India •Foreign source •Domestic source •Long term source •Debt capital •Equity capital

Source of Foreign capital Foreign capital

Official

Bia-leteral & multi Leteral aids

Tied and untied aid

Private source

FDI

Portfolio investment

Other source of finance  Euro issue

FCCB  Equity share 



ADR & GDR

 FDI inflow on India

Official source  Bilateral and multi-literal aid 





When two country involve one is loan granter and other is receiver When many countries come together and make a pool of amount to assist any country Example- world bank, Asian development bank, IMF etc

 Untied aid and tied aid 

Free aid that country avail with out any condition and vise versa

FDI in India

GDR Global Depository Receipt means any instrument in the form of a depository receipt or certificate created by the overseas depository bank outside India and issued to non- resident investors against the issue of ordinary shares or Foreign Currency Convertible Bonds of issuing company

ADR  ownership in the shares of a non-U.S.

company and trades in U.S. financial markets  ADR is issued by a U.S. depositary bank and can represent a fraction of a share, a single share, or multiple shares of the foreign stock  ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. .

Foreign Currency Convertible Bond - FCCB  A type of convertible bond issued in a

currency different than the issuer's domestic currency  The money being raised by the issuing company is in the form of a foreign currency  ALSO called Euro issue

Sources of data collection  www.investopedia.com  www.rbi.gov  www.economywatch.com  www.google.com

Thanks