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    Financial Times

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    This document provides an introduction to concepts related to foreign direct investment (FDI) according to standards set by international organizations. It discusses the relationship between FDI and measures of the balance of payments and international investment position. It also gives an overview of FDI definitions, concepts, and recommendations from manuals published by the IMF and OECD. Additionally, it provides a brief overview of FDI trends in India, noting that economic liberalization beginning in 1991 led to steady increases in FDI inflows, which have generated over one crore jobs and made India the top destination for FDI in 2015, attracting more investment than China and the US.

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    Financial Times

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    s.p developers
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    This document provides an introduction to concepts related to foreign direct investment (FDI) according to standards set by international organizations. It discusses the relationship between FDI and measures of the balance of payments and international investment position. It also gives an overview of FDI definitions, concepts, and recommendations from manuals published by the IMF and OECD. Additionally, it provides a brief overview of FDI trends in India, noting that economic liberalization beginning in 1991 led to steady increases in FDI inflows, which have generated over one crore jobs and made India the top destination for FDI in 2015, attracting more investment than China and the US.

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    This document provides an introduction to concepts related to foreign direct investment (FDI) according to standards set by international organizations. It discusses the relationship between FDI and measures of the balance of payments and international investment position. It also gives an overview of FDI definitions, concepts, and recommendations from manuals published by the IMF and OECD. Additionally, it provides a brief overview of FDI trends in India, noting that economic liberalization beginning in 1991 led to steady increases in FDI inflows, which have generated over one crore jobs and made India the top destination for FDI in 2015, attracting more investment than China and the US.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views1 page

    Financial Times

    Uploaded by

    s.p developers
    This document provides an introduction to concepts related to foreign direct investment (FDI) according to standards set by international organizations. It discusses the relationship between FDI and measures of the balance of payments and international investment position. It also gives an overview of FDI definitions, concepts, and recommendations from manuals published by the IMF and OECD. Additionally, it provides a brief overview of FDI trends in India, noting that economic liberalization beginning in 1991 led to steady increases in FDI inflows, which have generated over one crore jobs and made India the top destination for FDI in 2015, attracting more investment than China and the US.

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    of 1

    1.

    1 Introduction

    Foreign Direct Investment (FDI) from the viewpoint of the Balance of Payments and the

    International Investment Position (IIP) share a same conceptual framework given by the

    International Monetary Fund (IMF). The Balance of Payments is a statistical statement that

    systematically summarises, for a specific time span, the economic transactions of an economy

    with the rest of the world (transactions between residents and non-residents) and the IIP

    compiles for a specific date, such as the end of a year, the value of the stock of each financial

    asset and liability as defined in the standard components of the Balance of Payments.

    We will not deal in this note with other relevant statistical concepts for operations overseas,

    particularly for financial institutions, such as exposure (foreign claims, international claims,

    etc.), which belong to the realm of the BIS statistics.3

    Sections 2, 3 and 4 give an overview of FDI definitions, concepts and recommendations adopted

    by the IMF's Balance of Payments Manual (5th Edition, 1993) and by the OECD's Benchmark

    Definition of Foreign Direct Investment (3rd Edition, 1996). Both provide operational guidance

    and detailed international standards for recording flows and stocks related to FDI. Section 5

    gives a quick overview of trends in FDI inward flows and stocks for the period 1980-2001.

    Section 6 reports on onward FDI flows for Spain, with particular attention to the financial

    sector. Finally a brief description of the main available sources of FDI is found in an annex.

    1.2 Foreign direct investment in India


    Foreign direct investment (FDI) in India is the major monetary source for economic
    development in India. Foreign companies invest directly in fast growing private Indian
    businesses to take benefits of cheaper wages and changing business environment of
    India. Economic liberalisation started in India in wake of the 1991 economic crisis and since
    then FDI has steadily increased in Indialt were Manmohan Singh and P. V. Narasimha Rao who
    brought FDI in India, which subsequently generated more than one crore jobs. According to
    the Financial Times, in 2015 India overtook China and the US as the top destination for the
    Foreign Direct Investment. In first half of the 2015, India attracted investment of $31 billion
    compared to $28 billion and $27 billion of China and the US respectively.

    Page Il

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