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Topic - FDI .: Plug Into The Global Economy

FDI is recognized as an important driver of growth in India. As the fourth largest economy and largest democracy, India provides political stability and a safe place to do business. It aims to attract long-term foreign capital to supplement domestic investment, especially in infrastructure and export sectors. Key sectors of opportunity include infrastructure, telecom, ports, roads, multi-brand retail, airlines, drugs, insurance, and media. FDI can increase domestic employment, investment in needed infrastructure, technology transfer, capital investment, and regional development.

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60 views8 pages

Topic - FDI .: Plug Into The Global Economy

FDI is recognized as an important driver of growth in India. As the fourth largest economy and largest democracy, India provides political stability and a safe place to do business. It aims to attract long-term foreign capital to supplement domestic investment, especially in infrastructure and export sectors. Key sectors of opportunity include infrastructure, telecom, ports, roads, multi-brand retail, airlines, drugs, insurance, and media. FDI can increase domestic employment, investment in needed infrastructure, technology transfer, capital investment, and regional development.

Uploaded by

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Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Topic FDI.
Plug into the Global Economy

FDI recognised as a Growth Driver

Large scale economic reforms

India A Good Place to Put Your Money


Fourth largest Economy (PPP) - A safe place to do business Largest democracy political stability & consensus on reforms

Largest reservoir of skilled manpower

Liberal & transparent investment policies

Long-term sustainable Competitive advantage - High growth rate economy

Second Largest Emerging Market

Attracting long-term foreign capital to supplement domestic investment efforts, particularly in infrastructure and export competitive sectors

Creating skilled employment Opportunities and Import of world Class managerial practices

FDI
Developing attractive Configurations of locational advantages at global level Promoting technology and other linkages to enhance domestic industry competitiveness

Global FDI trends 2013


Record FDI flows of US$ 1.35 trillion in 2012

Developed world still favourite (over 75% of global share)


52% of global FDI flow in developing countries India has retained its position as the worlds third most attractive destination for investment

WHAT WE ARE REALLY LOOKING AT IS A SIGNIFICANT SHARE OF WHAT COMES TO ASIA

INVESTMENT OPPORTUNITIES

INFRASTRUCTURE
INVESTMENT REQUIREMENT: US $ 2.5 TRILLION

SECTOR

PRESENT CAPACITY

CAPACITY ADDITION BY 2014

INVESTMENT BY 2013 (US $ Bn)

POWER
TELECOM

225 GW
960 M LINES

300 GW
1.15 Bn LINES

135
80

PORTS
ROADS

423 MILL. TONNES


4236000 KM

512 MILL. TONNES


100000KM

20
1.7 TRILLION

ADVANTAGES OF FDI
Increase in Domestic Employment/Drop in unemployment
Investment in Needed Infrastructure.

Increase in tax inflow


Positive Influence on the Balance of Payments. New Technology and Know How Transfer. Increased Capital Investment. Targeted Regional and Sectoral Development.

KEY SECTORS
TELECOM MULTI BRAND RETAIL AIRLINES DRUGS AND PHARMA INSURANCE PRINT MEDIA BOADCASTING

NEED FOR FOREIGN CAPITAL


Domestic Capital is inadequate for purpose of economic growth. It is essential as a temporary measure Bring productive factors

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