The document discusses foreign direct investment (FDI) in India. It notes that FDI in India has grown rapidly since 2005, driven largely by investment in the services sector. While FDI has had limited short-term impact, India has increased its global share of FDI inflows relative to other countries. The document outlines both advantages and disadvantages of FDI for India, including potential benefits to development but also risks of exploitation and technology piracy.
2. Meaning of Foreign Direct
investment. (FDI)
A source of capital and investment involving
foreign control of production.
A channel of technology transfer and industrial
development.
A source of exploitation.
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3. Present Picture in India.
• “India” Third largest economy in terms of
Purchasing Power Parity.
• Tenth most industrialized economy.
• GDP growth rate of 8.1% - Second highest in the
world.
• Considerable improvement in FDI inflows.
• FII inflows:
– For the period, July 2003 – Jan 2004 FII inflow has
exceeded USD 7 bn, which is more than the cumulative
FII inflow in the last five years.
• Still a big gap between India and China.
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4. Rapid FDI growth in India from 2005
onwards.
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5. FDI growth in line with overall investment
growth - local market demand key driver.
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6. Growth has been driven by the
services sector
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7. Limited FDI impact in the short-run.
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8. In-fact India is a relative gainer in global FDI share.
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9. In the long-term, continued positive outlook.
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12. Advantages
• Development of nation in field of technology,
infrastructure, financial & whole economic growth.
• Increase in standard of living.
• Availability of large market for costumers.
• Increase in Quality products.
• Increase of employment opportunity.
• Increase in investment in domestic sectors.
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13. Disadvantages
• Political factors risk.
• Exploitation of domestic resources.
• Corruption.
• Bureaucratic practice.
• Technology piracy.
• Difficult in quality maintenance.
• Difficulty increases for home players in same
sector. For eg. Retail sectors.
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14. PRESENT CONDITION OF TRADERS
Fringe Benefit Tax
VAT
INEFFICIENT
LICENCES & PERMITS
INDUSTRIAL DISPUTE ACT
LABOURS
SHOP & ESTABLISHMENT ACT PREVENTION OF BLOCK MARKETING ACT
COSUMER PROTECTION ACT ANTI HOARDING & PROFEELING ACT
WEIGHT & MEASUREMENT ACT MONEY LENDING ACT
PACKAGING ACT PRODEND FUND ACT
PREVENTION OF FOOD ADULTRATION ACT MINIMUM WAGES ACT
ESI ACT
GRATUITY ACT
BONUS ACT
ENTRY TAX
SERVICE TAX
FDI in Retail Trade
ANTI SOCAL ELEMENTS
OCTROI
WATER TAX
CENTRAL
EXCISE
POLITICIAL INTERFERANCE
PURCHASE TAX
SALES TAX INCOME TAX
POOR MARKET
CONDITION POWER PROBLEM
Cash Transaction Tax
INSPECTOR RAJ STAMP DUTY &
Quarterly „C‟ Form
WELTH TAX
HIGH BANK
CHARGES PROFESSIONAL TAX
New Naka Complex
ESSENTIAL COMMODITIES ACT
15. Aviation Information
Telecom Technology
Infrastructure
Retail Traders
Banking
Insurance
Pharma
Mining
Steel
Professional
Education
Presented By Mr B C Bhartia,Nagpur.