• Strategy for companies that wish to operate on a global basis.

• Refers to the investment made by an entity in an enterprise located in a different country.

• Investor will get certain degree of influence or control over the management of the enterprise. Route • Inward foreign direct investment • Outward foreign direct investment . • An Indian company can receive Foreign Direct Investment under the two routes:   Direct Route Govt.

.• RBI • F I P B(foreign investment promotion board) of the dept of commerce under ministry of finance.

. • Competitive advantage & innovation. • Effect on local culture. • Improved consumer welfare through reduced cost .FDI advantages and Disadvantages Advantages • Inflow of equipment and technology. wider choice and improved quality. • Employment generation. • Contribution to exports growth. • Financial resources for expansion. • Conflicts of laws • Loss of control. Disadvantages • Crowding of local industry. • Effect on natural environment.

(US$6 billion) • U. • Mauritius has been the largest direct investor in India. needed to qualify as FDI.S is the worlds largest recipient of FDI. .Facts… • At least 10% of shares of Co.(US$20 billion) • The United States is the second largest investor in India.

5 billion during January-December 2011 period. • $27. • FDI inflows for January-December 2010 stood at $21 billion.• Mumbai and New Delhi are two major cities where FDI inflows is heavily concentrated. . • Retailing is the single largest component of the services sector in terms of contribution to GDP.

What does 51% FDI in multi-brand retail mean? .

• Products should be sold under the same brand internationally. • 50% of the investment is to be in backend infrastructure development.• Minimum investment of $100 million. • Permission to set up malls only in cities with a minimum population of 10 lakhs. . • Government has the first right to procure material from the farmers. • Foreign investor should be the owner of the brand. • 30% of all raw material has be procured from India's small and medium industries.

. • A poorly managed food supply infrastructure.Present Condition: • Farmers get only 10 to 15% of the price we pay. • 3-4 middlemen in between farmers and customers. • Huge post produce losses for farmers due to inadequate facilities.

• It will remove the middleman from the equation. • It will reduce pre-harvest wastage/losses and thus help control food inflation.Why do we need it: • We are the second highest producer of fruits and vegetables in the world but still we are not able to utilize is properly because of inadequate infrastructure facilities. Apart from the huge number of indirect employment. . • It will increase competition which is always beneficial for the customer.5 million more jobs in 5 years. • It will create 1. It will reduce costs which in turn will reduce prices.

.• FDI in aviation: Allow foreign airlines to invest 49% in domestic carriers • Allowed by non-airline players. primarily due to security reasons. but bars foreign airlines from investing in them.

V sudhi89@gmail.Thanks . P.

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