REASONS FOR FOREIGN INVESTMENT IN INDIA Political stability & strong policy to protect investors Safety & security

y of life, money & output Investment protection through legal provisions Continuous infrastructure development A banking system with up to date technology A highly productive labor & smooth working conditions Clear & simple tax procedures Availability of raw materials & other components The demand for the products that investors manufactures

FOREIGN DIRECT INVESTMENT

Foreign Direct Investment (FDI) means a company or any other entity in one country making a physical investment in other country. FDI includes investments made to acquire a lasting interest in enterprises that are operating outside the economy & national borders of an investor. FDI (for a country) represents foreign assets in domestic Structures, equipments & organizations.

BENEFTS OF FDI

INFLOW OF CAPITAL IN HOME COUNTRY REPATRIATION OF PROFITS BY INVESTOR TECHNOLOGY DEVELOPMENT & TRANSFER TRANSFER OF KNOWLEDGE ACCESS TO NEW MARKETS FDI LED EXPORT GROWTH EMPLOYMENT GENERATION INFRASTRUCTURE DEVELOPMENT IN HOME COUNTRY LEADS TO LIBERALIZATION & GLOBALIZATION

SECTORS ATTRACTING HIGHEST FDI INFLOWS

FDI IN INFRASTRUCTURE SECTOR

Inflow of FDI in the infrastructure sector has brought about a host of changes in the industry, including an end to large number of government regulations of innovative schemes of financing infrastructure projects.

India is now the third most favoured destination for FDI,

behind China and USA. A proactive approach is even been seen on behalf of the government. Allowing 100% FDI in infrastructure sector is just one of the reformed policy changes that we have

been witness to.

REASONS TO ATTRACT FDI IN INFRASTRUCTURE

Indias infrastructure is alive and well and is adequate to the previously slow growing economy. Government alone is not capable to finance, let alone building it and successfully running it. FDI as source of cash and foreign technical know how with their participation IS must for the growth of infrastructure in India. Overall investment plan for this sector is being drawn up by the governments planning body. It includes participation of central & state governments together with the private sector. . The latter is expected to fund and manage about 20% of the overall investment and projects so more of FDI can be attracted towards the private sector.

 India has recognized that without proper infrastructure there is no possibility of making rapid strides on the economic front so there a need to attract FDI in this sector. Another critical issue is that of making people pay for using infrastructure services. BOT based road development is one such example. This is the biggest challenge as far as the viability of projects is concerned, as in this case, public attitude has to be changed. In order to make efficient uses of critical utilities like electricity and water supplies, these need to be priced as per the cost of providing these services and not as per political compulsions (provision of free electricity is an example). This can prove to be the biggest attraction for FDI participation.

Conclusion For Infrastructure

As can be seen from the recent initiatives of India Inc and government, we surely are moving in the direction of emerging as an economic power in Asia. However, while there might be speed breakers in the way, a world class infrastructure set up can take care of the same. In India, we surely are living in one of the most exciting times ever. Time is changing! In fact, there is no other option. Time has to change and so is India. infrastructure in India.

Conclusion
Strengthen the public care system in amending certain regulation While there are clearly concerns about the equity, affordability and market segmentation, implications of growing foreign investors presence in Indias hospital segment, it is evident that the root cause lies in structural problems that are already present in the health care sectors, such as lack of affordable health insurance schemes or inappropriate regulations on medical education providers. foreign investment and greater corporate presence in hospital could aggravate such structural problems systems. The inside obtained from the discussions with stake holders suggest that the solution lies inthat affect all players and in introducing schemes, which provide affordable access to health care for all and not in restricting foreign investment, the benefits of foreign investment in hospitals are likely to out weigh these adverse affects.