Report: India's Monetary Policy

Topics: Investment, Macroeconomics, Foreign direct investment Pages: 2 (446 words) Published: February 25, 2009
DI in India has increased over the years due to the efforts that have been made by the Indian government. The increased flow of FDI in India has given a major boost to the country's economy and so measures must be taken in order to ensure that the flow of FDI in India continues to grow. Advantages of FDI in India:

The Indian government made several reforms in the economic policy of the country in the early 1990s. This helped in the liberalization and deregulation of the Indian economy and also opened the country's markets to foreign direct investment.

Amount of foreign direct investment in India
The total amount of FDI in India came to around US$ 42.3 billion in 2001, in 2002 this figure stood at US$ 54.1 billion, in 2003 this figure came to US$ 75.4 billion, and in 2004 this figure increased to US$ 113 billion. This shows that the flow of foreign direct investment in India has grown at a very fast pace over the last few years. The various forms of foreign capital flowing into India are NRI deposits, investments in the commercial banks of India, and investments in the country's debt and stock markets. FDI in major sectors in India

The major sectors of the Indian economy that have benefited from FDI in India are - Financial sector (banking and non-banking).
Hospitality and tourism
Software and Information Technology.
Advantages of FDI
Documents for FDI
Foreign Investment through GDRs
Portfolio Investment by Foreign Sources
Regulations on Portfolio Investments by FIIs
External Commercial Borrowings (ECBs)
Non-Resident Deposits
FDI Approval in India
FDI Status in Different States
Credit Policy of Foreign Investment
Investment in Government Securities
Regulations for Foreign Venture Capital Investment
Procedure for Opening Branch Office by Foreign Companies Opening Representative Office by Foreign Companies
Procedure for Opening Project Office by Foreign...
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