Grp 2 fdi in india presented at Chinmay Tutorials
- 1. FDI IN INDIA
- 2. WHAT IS FDI? FDI can be defined as a cross border investment, where foreign assets are invested into the organizations of the domestic market.
- 3. Increase investment level and thereby increase in income & employment. Increase tax revenue of government. Facilitates transfer of technology. Increase exports and reduce import requirements. Increase competition and break domestic monopolies. Improves quality and reduces cost of inputs. Why countries seek FDI
- 4. 1995 – World Trade Organization’s general agreement on trade in services, which include both wholesale and retailing services, came into effect 1997 – FDI in cash and carry (wholesale) with 100% rights allowed under the government approval route 2006 – FDI in cash and carry (wholesale) brought under the automatic route Up-to 51% investment in a single- brand retail outlet permitted 2011 – 100% FDI in single –brand retail permitted 2012, Sep – 51% FDI in multi- brand retail permitted Government Policies Background:
- 5. 1)AUTOMATIC ROUTE: FDI is allowed without prior approval of RBI or government as specified under FDI policy 2)GOVERNMENT ROUTE: FDI is allowed with prior approval of Foreign Investment Promotion Board(FIPB),Department of Economic Affairs , Ministry of Finance. ENTRY ROUTES FOR FDI:-
- 6. Retail Trading Atomic Energy Lottery Business Gambling and Betting Housing and Real Estate business Agriculture Plantations (Other than Tea plantations) SECTORS WHERE FDI IS PROHIBITED:-
- 7. Policy in Defense sector liberalized and FDI cap raised from 26% to 49%. 100% FDI under automatic route permitted in construction, operation and maintenance in specified Rail Infrastructure projects. Easing of norms underway for FDI in the Construction Development sector. Opening up Foreign Direct Investment in key sectors:- .”
- 8. SINGLe brand RETAIL Single brand retail is one in which a single item is sold across all outlets. Such as GUCCI, NIKE, ADIDAS.
- 9. Multi-brand retail or "Supermarket" is where many items are sold under a single roof. For e.g. Tesco, Carrefour etc. Multi Brand Retail
- 11. Major Retailers in India
- 12. Retail formats in India E TradersShopping Malls
- 13. Retail formats in India Specialty stores
- 14. FACTS At least 10% shares of the company needs to quality as FDI. Mauritian has been the largest direct investor. New Delhi and Mumbai are two major cities where FDI inflows is heavily concentrated.
- 15. The Indian Cabinet Committee on Economics Affairs (CCEA) is strongly expected to raise the FDI ceiling in the Insurance and Pension sectors. FDI threshold to 49% in the Insurance sector from the existing limit of 26%, has been submitted to the cabinet for proper approval in the quickest possible period. Increment in the FDI ceiling in the insurance sector of India, will certainly be highly and greatly appreciated by domestic and foreign insurance companies, for the purpose of expanding and enriching their insurance and re-insurance business. FDI IN INSURANCE SECTOR
- 16. FDI IN BROADCASTING SECTOR Liberalize the broadcasting sector of India to FDI, the Indian in Cabinet Committee on Economic Affairs(CCEA) raised the FDI cap from 49% to 74% many field of broadcasting sectors. CCEA opted to retain the existing cap of 26% in the fields of TV news channels and FM radio.
- 17. Farmers get greater share of consumer’s pay, Retailers directly source goods from farmers, Integrating Indian farmers in Global Supply-Chain. HOW FARMERS GET Benefited?
- 18. • Wastage and Storage problems will be resolved, • Efficient logistics, production, and distribution channels, • Digital records, Infrastructure, Distribution and warehousing technologies. Advancement of Technology
- 19. • Creating at least 10 million jobs in Agro-processing, Manufacturing, Logistics. • Improvement in the quality of employment, • Estimating 50% of jobs in rural areas, • 30% of inputs from Medium-size & Small enterprises. Opportunity for Employment
- 20. Safety & quality, High shopping experience, Upgradation of lifestyle & fashion of people, Awareness of International Brands. SATISFIED CONSUMER
- 21. Crowing of local industry. Conflicts of law. Loss of control. Effect on notional environment. Effect on culture. Negative Impacts
- 22. Presented by Chinmay Tutorials CS professional Students: Lokesh Sachin Deepika Deepank Poorva Pinky
- 23. ANY QUESTIONS???