Foreign direct investment Meaning Two ways of FDI Advantages Disadvantages

1. Under the Guidance of : Mr. SUNDAR B N
Asst. Prof. & Course Co- Ordinator
Post Graduation Studies In Commerce
G.F.G.C For Women Holenarasipura
Presented By :
Divya M R
1st M.com

2.  Introduction.
 Meaning.
 Ways of FDI.
 Advantages and disadvantages.
 Top 10 FDI investment states in India.
 Reference.
 Conclusion.

3. Foreign Direct Investment (FDI) In India
was introduced in the 1991 under the
Foreign Exchange Management Act
(FEMA) implemented by the then Finance
Minister, Dr. Manmohan Singh.
It commenced with the baseline of 1
billion dollars in 1990.

4. A foreign direct investment (FDI)
is an investment in the form of a
controlling ownership in a
business in one country by an
entity based in another country. It
is thus distinguished from a
foreign portfolio investment by a
notion of direct control.

6. Foreign company purchases
shares or debentures of Indian
company and invests in the Indian
company.
Foreign company comes to India
and establish their own company
in India.

7. 1. Upgradation of Technology.
2. Improvement in Export Competitiveness.
3. Human capital development.
4. Increased Competition.
5. Creation of a competitive market.
6. Exchange rate stability.
7. Increment in Income.
8. Increased productivity.

8. 1. Hindrance to Domestic Investment.
2. Risk of Political Change.
3. Higher cost.
4. Economic non-viability.
5. Poor Performance.
6. Increase in Pollution.

10. Foreign direct Investment can lead to
beneficial restructuring of the entire
industry, including opportunities for better
performing local participant.

11. https://enterslice.com/learning/advantages-and-disadvantages-of-fdi
https://youtu.be/D-qSghXGH_8
https://youtu.be/Qx3Otv_xa