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ROLE OF FDI IN INDIAN ECONOMY

Presented by : -

Hardik PatelClass- T. Y. A!ITM"

R#ll N# : $%

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INTRODUCTION

Foreign Direct Investment, or FDI, is a type of investment that

involves the injection of foreign funds into an enterprise that

operates in a different country of origin from the investor.

It usually involves participation in management, joint

venture, transfer of technology and expertise.

FDI can be classified:  Inward FDI and Outward FDI

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In !!"#!$, FDI stood at %&.' billion.

FDI in !!$#(! was %). billion

In !(!#((, FDI into India declined to %($.)' billion, a

significant decrease from both !!" and !!$

Foreign direct investment *FDI+ in India may cross %'

 billion in !((#!( as against %($.) billion in the last

financial year 

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OBJECTIVE OF THE STUDY

-he objective of this study being conducted is: -o study the trends and patterns of flow of

FDI.

-o explore the sector wise distribution of FDIinflows in order to point out the dominating

sector which has attracted the major share

-o assess the determinants of FDI inflows. -o evaluate the impact of FDI on the Indian

conomy.

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dvantage’s

Inflow of e/uipment and technology

0ompetitive advantage 1 innovation

Financial 2esources for expansion

mployment generation

0ontribution to export growth

3ccess to low cost resources for investor

3ccess to new mar4et, reduced cost, wider

choices 1 Improved /uality.

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isadvantage’s

0rowding of local industry

5oss of 0ontrol

0onflicts of codes6laws

7ossible xploitation of resources materials6

wages

ffect on local culture 6 sentiments socio culture

effectffect on natural enviroment

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DI Infows :

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cedure o FDI in India Identi&'ati#n #( str)'t)re

Central *#+ern,ent ar#+al i( re)ired

/ettin0 ) #r in'#r#ratin0 t1e str)'t)re

In2#3 #( ()nds +ia eli0ible instr),ents and

(#ll#3in0 ri'in0 0)idelines Meetin0 re#rtin0 re)ire,ents #( RI and

rese'ti+e A't

Re0istrati#ns4#btainin0 key d#'),ents likePAN et'

Pr#5e't ar#+al at state le+el

Findin0 ideal sa'e (#r b)siness a'ti+ity

based #n +ari#)s ara,eters like

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Man)(a't)rin0 r#5e'ts are re)ired t#&le Ind)strial Entrerene)r7sMe,#rand), !IEM"6 s#,e #( t1eind)stries ,ay als# re)ire ind)strialli'ense.

C#nstr)'ti#n4ren#+ati#n #( )nit.Hirin0 #( ,an#3er.Obtainin0 li'enses i( any.

Ot1er state 8 'entral le+el re0istrati#ns.Meetin0 ann)al re)ire,ents #( a

str)'t)re6 ayin0 ta9es et'.

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RECENT /I*NIFICANT FDI ANNONCMENT/

 ;aan7s )llet Train 3#rt1 Rs- /< =.$$illi#n

C1inese C#. C##lad *r Li,ited in+ests

ar#9 ar#)nd /?? ,illi#n A,a@#n India /

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CONCL/ION

-he increased flow of FDI in a country has given a major boost to

the country8s economy.

FDI has provided better access to technologies for the local

economy.

FDI has lead to indirect productivity gains through spillovers.

9ultinational firms have increased the degree of competition in

host#country mar4ets which will force existing inefficient firms to

invest more in physical or human capital.

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ervice sector has been the most sought after sectorin India for Foreign Direct Investments.

India, with its s4illed labor and manpower has the potential to overta4e 0hina as the most preferred

destination for Foreign Investments.

;ence measures must be ta4en in order to ensure that

the flow of FDI in our country continues to grow.

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THANK

 YOU