Study of Fdi

Topics: Investment, Foreign direct investment, Macroeconomics Pages: 14 (3427 words) Published: February 9, 2013
Study of FDI in Two Sectors in India
A Project in International Business

Submitted By – Group-6(SEC - G)
Aakansha Sahai (11FN-120) Karan Anand (11IB-027) Rahul Gupta (11DM-117) Rohit Kumar Singh (11DM-128) Sourabh Mittal (11DM-157) Subhomoy Ganguly (11IT-029)

Group – 6 Sec-G

It gives us immense pleasure to complete this project on such a good note and present the relevant findings in a concise format. This report and the subsequent project would not have been possible without the guidance and the opportunity provided to us by Prof. D. Datta. We thank him for his valuable time and effort and his effective guidance throughout the trimester. We would also like to thank all the colleagues in Section G who helped us in the project. Group-6 Sec-G


Group – 6 Sec-G

1. 2. 3. 4. 5. Executive Summary FDI – An Overview FDI in India – A historical View Current Situation Of FDI In India Retail Sector and FDI • Single Brand Retail • Cash & Carry • Multi Brand Retail • Analysis of Sector, Major Problems and Suggestion 6. FDI in Telecom Sector • Policies, targets • Statistics • Analysis of Sector, Major Problems and Suggestion 7. Conclusion 8. References 3 4 4 5 6 7 8 9 9 9 10 11 12 14 14


Group – 6 Sec-G

Executive Summary
Foreign Direct Investment has been one of the most relevant topics studied and researched in the recent part. If we see its origin in our country, it can be traced back to the arrival of East India Co., though after independence India as country, restrained itself from any foreign financial investment for most of the time till 1990. Due to various problems like decreasing export, balance of payment problem etc., Indian economy went for a major reform. It was liberalised and inclusion of private players and need of foreign investment and technology was considered as a major factor in economic growth. With this objective, India opened many sectors for foreign direct investment. Our scope of study consist retail and telecom sectors. Both these sectors have been important from many angles. First they are related to day to day life and any change in its policy directly going to affect common people. After that, in recent time both of these sectors have seen many obstacles like delay in policy formation in retail, taking back retail in multi brand retail, and telecom sector facing problem due to instability created due to scams and consequent actions. Still, foreign direct investment has been a major boost for these two sectors. It has transformed the whole industry. It can been seen by proliferation of several retail chains like Levi, Nike, Pizza hut and the rapid increase in number in number of cell phones in India. In our analysis we have mainly focused on industrial details, major policies and factors favouring foreign direct investment, relevant statistical data and our view on current scenario and future of foreign investment in these two sectors.


Group – 6 Sec-G

Foreign Direct Investment
Foreign direct investment is a type of investment that involves the injection of foreign funds into an enterprise that operates in a different country of origin from the investor. Foreign direct investment (FDI) plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. For a host country or the foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, products, organizational technologies and management skills, and as such can provide a strong impetus to economic development. The direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirect investment. In the past decade, FDI has come to play a major role in the internationalization of business. Due to rapid changes in technology, growing...
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