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of foreign funds into an enterprise that operates in a different country of origin from the investor.
It usually involves participation in management, joint
most important FDI destination(after China) for transnational corporations during 2010-2012. The sectors which attracted higher inflow were service, telecommunication, construction activities and computer software and hardware. Mauritius, Singapore, the US and the UK were among the leading sources of FDI. FDI in India crossed $ 46.84 billion in the last financial year.
Broadcasting
-FM radio stations-20% -cable network-49% -Direct-To- Home service-49% -sky broadcasting service-74%(Automatic-49%, Gov approval route-up to 74%) Banking sector -Private sector Bank-74%(Automatic route 49% and Governmental approval route-up to 74%). -Public sector banks-20%
multinational subsidiaries
2005-2006------$8.96billion (48%) 2006-2007------$22.82billion (146%) 2007-2008------$34.83billion (53%) 2008-2009------$41.87billion (20%) 2009-2010 ------$37.74 billion(-08%) 2010-2011 ------ $34.84 billion(+34%) 2011-2012 ------ $46.84 billion(+34.4%)
[ 1]Vodafone(services)
[2] Nokia(Electrical Equipment) [3] General motors(Real state)
[4] suzuki(Transportation)
Ranks
Country
MAURITIUS SINGAPORE UK JAPAN U.S.A
2011-2012
3 4 5
6
NETHERLANDS
CYPRUS GERMANY FRANCE U.A.E
4283
7,728 2,980 1,437 3,017 123,120
5,501
4,171 908 3,349 1,569 88,520
6,698
7,722 7,452 3,110 1,728 173,946
32,325
29,670 20,828 13,378 10,320 775,006
4%
4% 3% 2% 1%
7 8 9 10
TOTAL FDI INFLOWES
Rank s 1 2 3 4 5
Sector
2010-2011
2011-2012
6
7 8 9 10
Chemicals
Drugs & Pharmaceuticals Power Auto Mobile Industry Metallurgical Industries
1,726
1,006 6,138 5,893 1,999
1,812
961 5,796 5,864 5,023
36,227
14,605 7,678 4,347 8,348
47,904
42,868 33,214 30,785 26,936
6%
5% 4% 4% 4%
increasing foreign exchange reserves to US$ 251985 millions as against US$ 9220 millions in 1991-92. An analysis of last eighteen years of trends in FDI inflows in India shows that initially the inflows were low but there is a sharp rise in investment flows from 2005 onwards. Although Indias share in global FDI has increased considerably, but the pace of FDI inflows has been slower than China, Singapore, Brazil, and Russia. India has received maximum number of financial collaborations as compared to technical collaborations
(nearly 40 percent of the total FDI inflows) apart from USA (8.8 percent), Singapore (7.2 percent), U.K (6.1 percent), Netherlands (4.4 percent) and Japan (3.4 percent) In order to have a generous flow of FDI, India has maintained Double Tax Avoidance Agreements (DTAA) with nearly 70 countries of the world. India has received increased NRIs deposits and commercial borrowings largely because of its rate of economic growth and stability in the political environment of the country
Mumbai and New Delhi have been the top performers, with the majority of FDI inflows within India being heavily concentrated around these two major cities. Chennai, Bangalore, Hyderabad and Ahamedabad are also drawing significant shares of FDI inflows. For statistical purposes, Indias Department of Industrial Policy and Promotion (DIPP) divides the country into 16 regional offices. The top 6 regions account for more than two-thirds of all FDI inflows to India.
foreign investors to invest in state where the foreign investors to invest in states where the level of FDI inflows is quite low. Govt should ensure the equitable distribution of inflows among states, so that they can attract inflows at their own level. Gov must target at attracting specific type of FDI that will be able to generate spillovers effects in the overall economy like investing in human capital R&D activities, environmental issues, productive capacity, sectors with high income elasticity of demand.
diverse type of FDI and should design policies where foreign investment can be utilized as means of enhancing domestic production, savings and exports and also as medium of technological learning and diffusion and also in providing access to the external market. Gov must exercise strict control over inefficient bureaucracy, red-tapism and the rampant corruption, so that investors confidence can be maintained for attracting more FDI inflows to India.
major boost to the countys economy. FDI has provided better access to technologies for the local economy. FDI has lead to indirect productivity gains through spillovers. Multinational firms have increased the degree of competition in host- country markets which will force existing inefficient firms to invest more in physical or human capital.
India for FDI. India, with its skilled labour and manpower has the potential to overtake China as the most preferred destination for foreign investment. Hence measures must be taken in order to ensure that the flow of FDI in our country continues to grow.