1. FOREIGN DIRECT
INVESTMENT (FDI) IN
INDIA
By :-
Navneet Chaudhary
Nikesh Biswal
Sagar Singh
Muttu Ayyanar
Jairaj Vaidya

2. INTRODUCTION
 Foreign Direct Investment, or FDI, is
acquisition of physical assets or capital in India.
It leads to change in management, transfer of
technology, increase in production etc.
 It usually involves participation in
management, joint venture, transfer of
technology and expertise.
 FDI can be classified:
Inward FDI and Outward FDI

3. FDI BENEFITS
Economic
Growth
Trade
Employment
and skill levels
Technology
diffusion and
knowledge
transfer
Linkages and
spillover to
domestic firms

4. 4
FDI APPROVAL PROCEDURE
Government Route
for few
sectors
Automatic Route
in most
Sector
RESERVE BANK
OF INDIA
Foreign Investment
Promotion Board
No permission
required, only to notify
RBI within 30 days of
issue of shares to foreign
Approval is
granted generally
in 30 days

5. FDI INFLOWS IN INDIA
10,733
18,654
12,87110,06414,653
24,584
56,390
98,642
142,829
123,120
97,320
165,146
121,907
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
FDI Inflow in India (In Rs. Crore)

6. TOP INVESTING
COUNTRIES
45241
9387 7845 5596 4282 3565 3527 2654 1476 1466
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000

7. FDI INFLOW- SECTOR
WISE
0
26306
7248
1654
2656
6011
1596
8384
2923
7878
17777
0
5000
10000
15000
20000
25000
30000

8. CONCLUSION
 The increased flow of FDI in a country has
given a major boost to the country's economy
 FDI has provided better access to technologies
for the local economy
 FDI has lead to indirect productivity gains
through spillovers
 Multinational firms have increased the degree of
competition in host-country markets which will
force existing inefficient firms to invest more in
physical or human capital

9. • Service sector has been the most sought after
sector in India for Foreign Direct
Investments
• India, with its skilled labor and manpower
has the potential to overtake China as the
most preferred destination for Foreign
Investments
• Hence measures must be taken in order to
ensure that the flow of FDI in our country
continues to grow

10. THANK YOU