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A journey is easier when you travel together. This project report is the result of two
months of work whereby, we accompanied and supported by many people. We
would like to extend our gratitude to Mr. Mandeep Hayer who kindly accepted to
guide us in the project. We are thankful to him for spending his valuable hours to
review and analyze our project at every stage and suggested necessary changes.
We feel our self extremely fortunate to have had the opportunity of associating our
self with him. His constant encouragement and positive words were greatly
instrumental in making this work a success.
For most, we would like to thank God for His grace and blessings. Last but not the
least I would like to thanks my parents and family members for their affection and
inspiration all the time.
Introduction:
Foreign direct investment (FDI) is direct investment into production in a country
by a company in another country, either by buying a company in the target country
or by expanding operations of an existing business in that country. Foreign direct
investment is done for many reasons including to take advantage of cheaper wages,
and/or for special investment privileges such as tax exemptions offered by the
country as an incentive to gain tariff-free access to the markets of the country or
the region. Foreign direct investment is in contrast to portfolio investment which is
a passive investment in the securities of another country such as stocks and bonds.
Inward and outward direct investment (FDI) stocks and flows tend to go together,
across countries and over time. The countries that invest extensively abroad are
usually also large recipients of FDI. There is little evidence that flows of FDI are a
major influence on capital formation.
One of the advantages of foreign direct investment is that it helps in the economic
development of the particular country where the investment is being made.
But as we all know every coin has two sides, same way FDI do possess pros and
cons to a country. It can be seen when 51% approval is proposed by Indian
government a debate in parliament is held which is concluded below:
Favor:
Objectives of project
FDI in India
FDI in retail
FDI in setting-up
Agri suppy
com chain
paris
ion
of
price
s
FDI in India
FDI in Retail
Farmers, consumers will benefit from policy reforms: The bold policy moves
made by the government are in the interest of farmers, manufacturers, consumers,
everybody. I feel that India is back on the move said Rajan Mittal. Large
investments will pour in and huge employment opportunities can be expected.
Review of Literature
The review of past studies helps us in framing objectives, developing research
design, variable selection, interpreting the results and in drawing meaningful
conclusions. In accordance with the objectives of the study, a brief review of
literature is presented here under the following headings.
1. Foreign Direct Investment Flows to India
During the recent global crises FDI inflows to India did not show as much
moderation as was the case at the global level. However, when the global FDI
flows to EMEs recovered during 2010-2011, FDI flows to India remains sluggish
despite relatively better domestic economic performance ahead of global recovery.
Research methodology:
Data collection:
Appendix:
Bibliography
NDTV.
(2012,
sepember
20).
NDTV
Business.
Retrieved
from
www.ndtv.comhttp://www.ndtv.com/video/player/news/real-benefits-of-
retail-fdi-are-limited-india-ratings/247552
http://www.ndtv.com/video/player/news/farmers-consumers-will-alsobenefit-from-policy-reforms-rajan-mittal/246873
http://ibnlive.in.com/news/fdi-in-retail-will-bring-investment-of--700million-narayanasamy/300628-3.html
IBN.
(2012,september
30).
IBN
Business.
Retrieved
from
www.ibnlive.in.com:http://ibnlive.in.com/videos/296664/retail-fdi-wont-
hit-small-traders-rajan-mittal.html