1. Introduction…
• Strategy for companies that wish to operate
on a global basis.
• Refers to the investment made by an entity in
an enterprise located in a different country.
2. • Investor will get certain degree of influence or
control over the management of the
enterprise.
• An Indian company can receive Foreign Direct
Investment under the two routes:
Direct Route
Govt. Route
• Inward foreign direct investment
• Outward foreign direct investment
3. • RBI
• F I P B(foreign investment promotion board) of
the dept of commerce under ministry of
finance.
4. FDI advantages and Disadvantages
Advantages Disadvantages
• Inflow of equipment and • Crowding of local industry.
technology.
• Competitive advantage & • Conflicts of laws
innovation. • Loss of control.
• Financial resources for
expansion. • Effect on natural
• Employment generation. environment.
• Contribution to exports • Effect on local culture.
growth.
• Improved consumer welfare
through reduced cost , wider
choice and improved quality.
5. Facts…
• At least 10% of shares of Co; needed to qualify
as FDI.
• Mauritius has been the largest direct investor
in India.(US$20 billion)
• The United States is the second largest
investor in India.(US$6 billion)
• U.S is the worlds largest recipient of FDI.
6. • Mumbai and New Delhi are two major cities
where FDI inflows is heavily concentrated.
• FDI inflows for January-December 2010 stood at
$21 billion.
• $27.5 billion during January-December 2011
period.
• Retailing is the single largest component of the
services sector in terms of contribution to GDP.
8. • Minimum investment of $100 million.
• 50% of the investment is to be in backend
infrastructure development.
• 30% of all raw material has be procured from
India's small and medium industries.
• Permission to set up malls only in cities with a
minimum population of 10 lakhs.
• Government has the first right to procure material
from the farmers.
• Products should be sold under the same brand
internationally.
• Foreign investor should be the owner of the
brand.
9. Present Condition:
• Farmers get only 10 to 15% of the price we
pay.
• 3-4 middlemen in between farmers and
customers.
• Huge post produce losses for farmers due to
inadequate facilities.
• A poorly managed food supply infrastructure.
10. Why do we need it:
• We are the second highest producer of fruits and
vegetables in the world but still we are not able to
utilize is properly because of inadequate infrastructure
facilities.
• It will reduce pre-harvest wastage/losses and thus help
control food inflation.
• It will create 1.5 million more jobs in 5 years. Apart
from the huge number of indirect employment.
• It will increase competition which is always beneficial
for the customer.
• It will remove the middleman from the equation. It will
reduce costs which in turn will reduce prices.
11. • FDI in aviation: Allow foreign airlines to
invest 49% in domestic carriers
• Allowed by non-airline players, but bars
foreign airlines from investing in them,
primarily due to security reasons.