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    Impact of Fdi On Indian Economy

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    Ashok Subramaniam
    This document discusses the impact of foreign direct investment (FDI) on the Indian economy. It defines FDI and outlines its various classifications. It then notes the advantages of FDI, such as economic development, technology transfers, and job creation. Potential disadvantages are also presented, including risks to national secrets and dissatisfaction among local workers. The document examines India's economic growth over time, finding a correlation between increasing FDI inflows and rising GDP growth rates from 1990 to 2008. It concludes that FDI plays a major role in developing the Indian economy.

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    Impact of Fdi On Indian Economy

    Uploaded by

    Ashok Subramaniam
    19 views11 pages
    This document discusses the impact of foreign direct investment (FDI) on the Indian economy. It defines FDI and outlines its various classifications. It then notes the advantages of FDI, such as economic development, technology transfers, and job creation. Potential disadvantages are also presented, including risks to national secrets and dissatisfaction among local workers. The document examines India's economic growth over time, finding a correlation between increasing FDI inflows and rising GDP growth rates from 1990 to 2008. It concludes that FDI plays a major role in developing the Indian economy.

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    This document discusses the impact of foreign direct investment (FDI) on the Indian economy. It defines FDI and outlines its various classifications. It then notes the advantages of FDI, such as economic development, technology transfers, and job creation. Potential disadvantages are also presented, including risks to national secrets and dissatisfaction among local workers. The document examines India's economic growth over time, finding a correlation between increasing FDI inflows and rising GDP growth rates from 1990 to 2008. It concludes that FDI plays a major role in developing the Indian economy.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    19 views11 pages

    Impact of Fdi On Indian Economy

    Uploaded by

    Ashok Subramaniam
    This document discusses the impact of foreign direct investment (FDI) on the Indian economy. It defines FDI and outlines its various classifications. It then notes the advantages of FDI, such as economic development, technology transfers, and job creation. Potential disadvantages are also presented, including risks to national secrets and dissatisfaction among local workers. The document examines India's economic growth over time, finding a correlation between increasing FDI inflows and rising GDP growth rates from 1990 to 2008. It concludes that FDI plays a major role in developing the Indian economy.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 11

    IMPACT OF FDI ON INDIAN ECONOMY

    IMPACT OF FDI IN INDIAN ECONOMY

    INTRODUCTION TO FDI:

    Foreign Direct investment is the


    investment, which is made to serve the
    business interests of the investor in a
    company, which is in a different nation
    distinction from the investor’s country of
    the origin.
    CLASSIFICATIONS OF FDI:

    There are different types of FDI they are

    Inward FDI

    Outward FDI

    Greenfield FDI

    Mergers & Acquisition

    Horizontal FDI

    Backward FDI

    Vertical FDI and Forward Vertical FDI.


    ADVANTAGES OF FDI:

     FDI develops the economy of both host and


    home country.

     FDI permits the technology transfers.

     Employee enrichment in training and


    operations.

     It creates new jobs and advanced technology.

     It pays an avenue to receive the funds in lower


    rate of interests.
    DISADVANTAGES OF FDI:

     There is a chance to spread the national secrets.

     The host country workers may dissatisfy with


    the policies.

     Problem in language and culture.

     Size and condition of the market to the


    advanced technology.

     Government faces the problem to control the


    operations of host country FDI.
    INTRODUCTION TO ECONOMY:

    Orderly arrangement and management


    of the internal affairs of a state or of any
    establishment kept up by production and
    consumption; esp., such management as
    directly concerns wealth; as, political
    economy.
    INDIAN ECONOMY AN OVERVIEW:

    In recent days India is the best performer in


    world economy, but rising inflation is the
    greater challenge. The rising costs of oil, food
    and the resources needed for India’s
    construction boom are all playing a part.
    Government hopes on India’s homebred
    companies. As well as taking over the domestic
    reins.
    SECTOR - WISE CONTRIBUTION TO ECONOMY:

    Every sector contributing its best to the


    Indian economy but the major impact is from the
    agriculture as per the quota “Backbone of India
    is Agriculture” retail and service sector.

    INFLATION IN INDIA:

    It’s the crucial period for India on inflation


    due to high in oil prices the inflation rate
    touches the limit of sky where ever seen before
    this last one decay. Government taking
    necessary steps to cut shorts it.
    ROLE OF FDI ON INDIAN ECONOMY:

    FDI plays a major role in Indian economy, FDI


    creates lot of new opening and hike in individual
    salary because of it the life style get developed
    so automatically the growth of the economy get
    leveraged.

    During the year 1990 the GDP rate was 4.9%


    and the FDI was US$ 97 million, the year 2008
    the GDP rate is 8.7% and the FDI is US$ 20.10
    billion so its clearly shows us that there is a huge
    impact of FDI for the growth of Indian economy.
    The flow of FDI also increased gradually year
    after year from 2001 the FDI was 15.48 billion
    US$ and in 2007 it is 20.10 billion US$.
    CONCLUSION:

    The growth of economy was not


    commendable before 1991, after implementing
    LPG (Liberalization, Privatization &
    Globalization) there is a tremendous growth in
    Indian economy due to flow of foreign
    investment and opportunities provided in India
    to receive it.

    According to me FDI plays a major role to


    develop the Indian economy but to safe guard
    the Indian SMEs the government can reframe
    the FDI policies or the FDI can put its eyes on
    technology transfer.

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