FOREIGN DIRECT INVESTMENT IN INDIA :-ADVANTAGES & DISADVANTAGES By : Akshay Jhavar & Abhijith Venugopal
CONTENTS What is FDI ? Advantages of FDI FDI Limit in Different Sectors Disadvantages of FDI
What is FDI ? Foreign direct Investement (FDI) is direct Investment by a company in production Located in another country either by buying a company in the country or by Expanding Operations Of an Existing Business In the country Why FDI ? To take advantage of cheaper wages in the country,Special investment priveleges Such as Tax exemption offered by the country, To gain tariff-free access to the markets of the country .
Advantages of FDI Employment generation Inflow of Technology & Equipment's Increase Competition Trade Standard of Living
FDI LIMITS IN VARIOUS SECTORS :- SECTOR % OF FDI Defense Sector 26 % Insurance 49 % Telecom 100 % Tea Plantation 100 % Assess reconstruction Co. 100 % Petroleum & natural gas 49 % Commodity Exchanges 49 % Power Exchange 49 % Stock Exchange 49 % Credit Information co. 74 % Courier Service 100 % Single Brand Product Retail Trading 100 %
Disadvantages of FDI Political Influence Inflation Corruption Threat to Indian Retailers