Foreign Trade and Investment of India

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• Foreign Direct Investment in India Essay

  ...FDForeign direct investment (FDI) is direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment in India Starting from a baseline of less than $1 billion in 1990, a recent UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010–2012. As per the data, the sectors that attracted higher inflows were services, telecommunication, construction activities and computer software and hardware. Mauritius, Singapore, US and UK were among the leading sources of FDI. Based on UNCTAD data FDI flows were $10.4 billion, a drop of 43% from the first half of the last year.[14] India disallowed overseas corporate bodies (OCB) to invest in India. http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2513 (draw the chart from here) 2012 FDI reforms On 14 September 2012, Government of India allowed FDI in aviation up to 49%, in the broadcast sector up to 74%, in multi-brand retailup to 51% and in single-brand retail up to 100%.[16] The choice of allowing FDI in multi-brand retail up to 51% has been left to each state. In its supply chain sector, the government of India had already approved 100% FDI for...

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• Foreign Direct Investment in India Essay

  ...Foreign Direct Investment in India The Foreign Direct Investment means “cross border investment made by a resident in one economy in an enterprise in another economy, with the objective of establishing a lasting interest in the investee economy.   FDI is also described as   “investment into the business of a country by a company in another country”.   Mostly the investment is into production by either buying a company in the target country or by expanding operations of an existing business in that country”.    Such investments can take place for many reasons, including to take advantage of cheaper wages, special investment privileges (e.g. tax exemptions) offered by the country.   Foreign Direct investment (FDI) has a significant potential for accelerating development in the recipient economy. Besides capital flows, FDI can generate employment opportunities, facilitate acquisition of new technology and knowledge, enable human capital development and create a more competitive business environment among other thing. While FDI is generally expected to have beneficial effects, it is also vulnerable to certain adverse effects on the recipient economy. The costs to the host economy can arise from the market power of large foreign firms that may out weight small domestic producers. This may...

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• An Overview of Foreign Direct Investment in India Essay

  ...FDI IN THE RETAIL SECTOR IN INDIA – An Overview Introduction FDI – Literally expanded to Foreign Direct Investment (in retail) is an economic policy which would allow foreign players in the particular sector to invest in the Indian market or Indian enterprise or economy in order to acquire management interest on behalf of the investor/ing party. Such major parties like Walmart Stores Inc, Carrefour etc would be able to own up to 51% of retail stores here or 100% of single-brand stores (FDI in ‘Single brand’ retail implies that a retail store with foreign investment can only sell one brand. For example, if Adidas were to obtain permission to retail its flagship brand in India, those retail outlets could only sell products under the Adidas brand and not the Reebok brand, for which separate permission is required).However, 100% direct investment in single brand outlets comes at a price – The government, as a measure of protection, has said foreign retailers would have to source 30 percent of their goods from small industries. As such, the government is considering safety valves for calibrating FDI in the sector. For example: * A large sum of the investment would be required to be spent on long term investments building up infrastructure , creating a sound logistics system, and setting up business units so as to make...

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• Essay about LEGAL ISSUES ON FOREIGN INVESTMENTS IN INDIA

  ...CURRENT AFFAIRS LEGAL ISSUES ON FOREIGN INVESTMENTS IN INDIA As a result of various policy initiatives taken, the Indian economy has been rapidly changing from a restrictive regime to a liberal one. The present legal framework allows an easy entry to a foreign investor in India. The liberalization of the foreign investment regime in India commenced in 1991 and thereafter has been gradually liberalized by successive governments. Deregulation, privatization and easing of restrictions on foreign investments and acquisition are some of the main factors that have acted as significant catalysts in attracting foreign investments. India is now ushering in the second generation reforms aimed at further and faster integration of the Indian economy with the global economy. The outcome is evident- India has been ranked third for global foreign direct investments (FDI) in 2009, following the economic meltdown, and will continue to remain among the top five attractive destinations for international investors during the next two years, according to the United Nations Conference on Trade and Development (UNCTAD) in a new report on world investment prospects titled, ‘World Investment Prospects Survey 2009-2011”....

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• India Foreign Trade Policy Essay

  ...contentMDK:20592520~menuPK:579454~pagePK:34004173~piPK:34003707~theSitePK:579448,00.html India: Foreign Trade Policy | | | | | India: Foreign Trade PolicyAlthough India has steadily opened up its economy, its tariffs continue to be high when compared with other countries, and its investment norms are still restrictive. This leads some to see India as a ‘rapid globalizer’ while others still see it as a ‘highly protectionist’ economy.Till the early 1990s, India was a closed economy: average tariffs exceeded 200 percent, quantitative restrictions on imports were extensive, and there were stringent restrictions on foreign investment. The country began to cautiously reform in the 1990s, liberalizing only under conditions of extreme necessity.  Since that time, trade reforms have produced remarkable results. India’s trade to GDP ratio has increased from 15 percent to 35 percent of GDP between 1990 and 2005, and the economy is now among the fastest growing in the world.Average non-agricultural tariffs have fallen below 15 percent, quantitative restrictions on imports have been eliminated, and foreign investments norms have been relaxed for a number of sectors.India however retains its right to protect when need arises. Agricultural tariffs average...

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• Foreign Investment in India Essay

  ...Summary The article “Indian firms' foreign ownership at its peak” talks about foreign ownership in listed Indian firms. According to the analysts the foreign ownership has reached its peak and is expected to rise further as corporate profitability grows. However, factors such as high inflation and corruption may result in overseas investors being careful with their actions. As a result of year 2010, foreign institutional investors (FIIs) shareholding rose to the highest level since Indian markets opened up to foreign investment in 1993. In addition, strong corporate earnings had made India the top investment destination in 2010. As India is the second fastest growing major economy in the world after China, it is likely to attract higher investments in the future. Although the growth potential outlook for India remains positive, it is susceptible to correction due to is top priced trading compared to other markets. The threat of high inflation and rising crude prices resulting in a slow-down of growth and corporate profitability has affected the foreign investors action. The moderation in foreign flows has led to a decline in stock prices. An increase in FII shareholding was detected in sectors, such as consumer goods, pharma, metals, large software firms and telecom service...

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• Qualified Foreign Investments in India Essay

  ...A STUDY OF QUALIFIED FOREIGN INVESTMENTS: THE SYSTEM AND ITS BENEFITS TO FOREIGN NATIONALS By Saurav Mukhopadhyay, Indian Institute of Management, Ranchi A study of QFI: the system and its benefits to foreign Nationals Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 1|Page Key words and definitions Executive Summary Exhibits Figures Literature Review Background of the issue in study Analytical Interpretation Suggestions and Conclusion A study of QFI: the system and its benefits to foreign Nationals 1.Key words and Definitions 2.1 Authorised bank 2.2 Authorized Dealer 2.3 Authorized Person 2.4 Capital 2.5 Capital Account Transaction 2.6 Company Controlled by Indian residents 2.7 Depository Receipt 2.8 OCB 2|Page “Authorized Bank‟ means a bank including a co-operative bank (other than an authorized dealer) authorized by the Reserve Bank to maintain an account of a person resident outside India. “Authorized Dealer” means a person authorized as an authorized dealer under sub-section (1) of section 10 of FEMA. “Authorized Person” means an authorized dealer, money changer, offshore banking unit or any other person for the time being authorized under Sub-section (a) of Section 10 of FEMA to deal in foreign exchange or foreign securities. “Capital” means equity shares;...

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• Indias Foreign Trade Policy Essay

  ...Indian Foreign Trade Policy (FTP 2009-14) In the last five years India’s exports witnessed robust growth to reach a level of US$ 168 billion in 2008-09 from US$ 63 billion in 2003-04. India’s share of global merchandise trade was 0.83% in 2003; it rose to 1.45% in 2008 as per WTO estimates. India’s share of global commercial services export was 1.4% in 2003; it rose to 2.8% in 2008. India’s total share in goods and services trade was 0.92% in 2003; it increased to 1.64% in 2008. On the employment front, studies have suggested that nearly 14 million jobs were created directly or indirectly as a result of augmented exports in the last five years. As the export sector has been a major casualty in this downturn the Indian Government has set in motion strategies and policy measures which will catalyse the growth of exports. The short term objective of the Foreign Trade Policy (2009-14) is to arrest and reverse the declining trend of exports and to provide additional support especially to those sectors which have been hit badly by recession in the developed world. The Policy Objectives are as follows: a) Achieving an annual export growth of 15% with an annual export target of US$ 200 billion by March 2011. b) In the remaining three years of this Foreign Trade Policy i.e. upto 2014, the country should be able to come back on the high export growth path of...

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