Professional Documents
Culture Documents
Foreign
investment was
introduced
in
1991
under
Foreign Exchange
Management Act
(FEMA), driven by
then
finance
minister
Manmohan Singh.
Y=C+I+G+(X-M)
Where Y = income
C = household(or private) consumption demand
I = investment plus foreign investment
G = government demand for goods & services
X = exports
M= imports
Asset Acquiring
Mergers & Acquisitions
Brownfield Investment
Horizontal FDI
Vertical FDI
FDI is not
permitted in the
following
industrial sector:
Atomic Energy
Agriculture
Gambling
STATUS OF FDI IN
INDIA
Advantages of FDI
Sufficient flow of capital towards development in various
sectors as well as revenue generation.
Improvement
in
technology
and skill
which
reduces the
cost and
increases the
efficiency of
working
process.
Increase in Healthy
competition
will
benefit
the
end
consumer.
DISADVANTAGES
OF
FDI
Domestic
industries are
seeking due to
overflow of
cheap products
and monopoly
which makes
them
uncomfortable
to survive.
Unethical
behaviours like
corruption,
redtapism and
selfishness is
increasing day
by day because
of money
matter for
example WalMart issue.
Foreign players
would displace
the unorganised
retailers because
of their superior
final strengths
and it would kill
local jobs and
millions of shops.