Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Presented By
Ashish Tiwari
AGENDA
Foreign Investment
Types Of Foreign Investment Significances Of Foreign Investment Limitations Of Foreign Investment Factors Affecting Foreign Investment
Foreign Investment
Joint Venture
Foreign
Acquisition
Investment By FIIs
Investment In GDRs,ADRs,FCCBs
Investment
Portfolio Investment (FPI)
Government Benefits
Competition Managerial Revolution Global Exposer Global Relationship
Evading Nature
Unfavourable Effect Towards Balance Of Payment
Speculation
Profitability
Costs Of Production
Economic Condition
Government Policies
Political Policies
87843
40180 2525
96338
44237 3619
86252
43751 2633
999901
40319 2168
31123
40772 2319
94365
46846 3403
258830
83521 25001
282440
108312 40418
233050
95000 34613
Indonesia 4th
Korea 6th Malaysia 7th Philippines 8th Singapore 3rd
6194
2325 7296 1520 8608
4677
2844 6324 1249 10746
356
5412 2714 1752 6389
2745
9333 3895 578 11803
4550
9283 3788 1241 5407
3277
3198 554 1792 8609
6928
2628 8538 2916 35778
9318
8409 7318 1544 10912
4877
5844 1381 1948 16809
Meaning of FDI
History Of FDI In INDIA
Types Of FDI
Significance of FDI Factors Affecting FDI To Come In INDIA Regulation For FDI Formation
Meaning of FDI
1. FDI stands for Foreign Direct Investment, a component of a country's national financial accounts. 2. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations.
2008
2011
FDI Up To 51% Allowed With Prior Government Approval In Single Brand Retail
Government Allowed 51% FDI In Multi Brand Retail And 100% FDI In Single Brand Retail
Types Of FDI
Investment In Indian Companies Can Be Made Both By Non-resident As Well As Resident Indian Entities.
Significance Of FDI
Financial Transfer In Foreign Exchange Production Technology Management Skills Information & Database
Worldwide Contacts
Research & Development Training Resources
Physical Resources Like Trade Channels Machinery Tools Equipment Etc. Institutional System
Today
Strong Macro Economic Fundamentals Encouraging Foreign Investment
Outsourcing Destination
Growing Consumerism
Foreign Investors
FIPB
Industry
CCFI
CCEA
Ministry
SIA
Indian Affiliate
Issues of shares
RBI
Metro Cash Wholly & Carry owned Joint venture Easy Day
8 9
2008 2010
Tesco Carrefour
Tata ______
46847 34847
40000
30000 20000 10000 0
4029
0 -18%
200102 6130 52% 200203 5035 -18%
41874
34835 22826
52% 40% 48% 53%
37745
0.8 0.6
6130
5035
4322
6051
8961
-14%
200405 6051 40% 200506 8961 48% 200607 22826 146% 200708 34835 53% 200809 41874 20%
-10000
FDI Offering
Capital Inflow From The Oversees Releasing Stress
Unproductive Way Response To Productive Way Help To Banking Sector Banking Sector
Neutral Towards Currency
60%
40% 20% 0%
Column1 Un-Oragnized Oragnized
95%
94%
92%
90%
88%
85%
5%
2010 95% 5%
6%
2011 94% 6%
8%
2012 92% 8%
10%
2013 90% 10%
12%
2014 88% 12%
15%
2015 85% 15%
Oragnized
Un-Oragnized
100% 80%
60%
40%
85%
80%
UN-ORANIZED ORANIZED
20%
15%
20%
CHINA
0%
INDIA
205 96
243
205
35
243
For FDI
Game Changer
Anti FDI
For FDI
Game Changer
Anti FDI
Government earns in the form of licenses fees, registration fees, taxes which is spend for public expenditure.
Meaning Of FII
Foreign Institutional Investment (FII)
FII denotes all those investors or investment companies that are not located within the territory of the country in which they are investing.
SEBIs definition of FIIs presently includes foreign pension funds, mutual funds, charitable/endowment/university funds etc. as well as asset management companies and other money managers operating on their behalf. Foreign Institutional Investor(FII) means an entity established or incorporated outside India which proposes to make investment in India and which is registered as a FII in accordance with the SEBI (FII) Regulations 1995.
Advantages of FII
Enhanced flows of equity capital FIIs have a greater appetite for equity than debt in their asset structure. It improve capital structures. Managing uncertainty and controlling risks. FII inflows help in financial innovation and development of hedging instruments. Improving capital markets.
Advantages of FII
FIIs as professional bodies of asset managers and financial analysts enhance competition and efficiency of financial markets. Equity market development aids economic development. By increasing the availability of riskier long term capital for projects, and increasing firms incentives to provide more information about their operations, FIIs can help in the process of economic development. Improved corporate governance. FIIs constitute professional bodies, improve corporate governance.
Disadvantages of FII
Problems of Inflation
Hot Money
These limits are within overall limit of 24% / 49 % / or the sectorial caps a prescribed by Government of India / Reserve Bank of India.
Prohibitions On Investments
Business of chit fund Nidhi Company Agricultural or plantation activities Real estate business or construction of farm houses (real estate business does not include development of townships, construction of residential/commercial premises, roads or bridges. Trading in Transferable Development Rights (TDRs).
2367.6
8186.2
10553.8
FDI
1. It is long-term investment 2. Investment in physical assets 3. Aim is to increase enterprise capacity or productivity or change management control
3. 4.
FII
1. It is generally short-term investment 2. Investment in financial assets Aim is to increase capital availability FII results in only capital inflows
8. Tends to be speculative
"If there is one place on the face of this earth where all the dreams of living men have found a home when man began the dream of existence, it is India". Romaine Rolland, French philosopher