Project Presentation

TABLE OF CONTENTS
 i) Title of the project
 ii) Objective & Scope of the study
 iii) Literature Survey
 iv) Methodology
 v) Data Analysis
 vi) Results and Discussion
 vii)Findings and Conclusions
 viii) Further scope of Investigation, if any
 Title of the project

“A STUDY ON ROLE OF FDI (FOREIGN DIRECT

INVESTMENT) IN INDIA”

 Name : Kiran Yadav

ROLL NUMBER : 1505005982
 The award: The degree of Bachelor Business
Administration
 The year of submission: 2018
 Objective of the study
The objective of this study is the impact of FDI on developing
economies such as India and current situation of FDI in
India, study the current trend of FDI on the global platform,
country that have most important economic value and how
companies analyze economies and accordingly investing
those countries and in which sector.
 To know the performance of Indian stock market.
 To know the impact of FIIs on Indian stock market.
 To know the impact of FDIs on Indian stock market.
 To study the trends and patterns of flow of FDI.
 To evaluate the impact of FDI on the economy.
 Scope of the study
The report examines The Impact of Foreign Institutional
Investments and Foreign Direct Investment on Equity Stock
Market in India. The scope of the research comprises of
information derived from secondary data from various
websites. The various information and statistics were derived
from the websites of BSE, NSE, Money Control, RBI and
SEBI. Sensex and Nifty was a natural choice for inclusion in
the study, as it is the most popular market indices and widely
used by market participants for benchmarking as this study
is aimed to analyze the trends in the FDI inflows, the main
focus is given on the recent trends in the inward FDI inflows,
sectors attracting highest FDI, and the share of top investing
countries, it covers only equity capital components. The
scope is limited to the availability of the secondary data.
 Literature Survey
This paper surveys the recent burgeoning literature that empirically
examines the foreign direct investment (FDI) decisions of multinational
enterprises (MNEs) and the resulting aggregate location of FDI across
the world. The contribution of the paper is to evaluate what we can say
with relative confidence about FDI as a profession, given the evidence,
and what we cannot have much confidence in at this point. Suggestions
are made for future research directions.
Foreign Direct Investment (FDI) flows have increased substantially in
the past two decades. These developments have motivated the
appearance of a large number of empirical papers that test the expected
benefits that FDI inflows are assumed to bring to the host countries. We
survey the recent theoretical and empirical literature, but restrict our
attention to the productivity changes that are induced by increased FDI
inflows. We review both the aggregate productivity effects, as well as the
spillover effects of FDI on local firms.
 Methodology
 INTRODUCTION: Research Methodology has many dimensions, it include not
only research methods but also considers the logic behind the methods used in
the context of the study and explains why only a particular method of technique
had been used so that research lend themselves to proper evaluations. Thus in a
way it is a written game plan for concluding research therefore in order to solve
research problem it is necessary to design a research methodology for the
problem as the same differ from problem to problem
 TYPE OF RESEARCH: This project is considered as an analytical research.
Analytical Research is defined as the research in which, researcher has to use facts
or information already available, and analyze these to make a critical evaluation
of the facts, figures, data or material.
 RESEARCH DESIGN: The research design is a pattern or an outline of a research
project. It is a statement only the essential of a study those provide the basic
guidelines for the detail of the project. The present study being conducted
follows a descriptive research design has the data would be responses from a
simple containing g a large numbers of sources.
 Methodology..contd…
 RESEARCH PROBLEM: Financial statement is a collection of data organized
according to logical and consistent accounting. Thus, the term ‘financial
statements’ generally refers to the two statements.
(1) The position statement or Balance sheet.
(2) The income statement or the profit and loss Account.
 SOURCE OF RESEARCH DATA:
PRIMARY DATA: The primary data is that data which is collected fresh or first
hand, and for first time which is original in nature. In this study the Primary data
has been collected from Questionnaire and Personal Interaction with Finance
manager and other staff members.
SECONDARY DATA: The secondary data are those which have already collected
and stored. Secondary data easily get those secondary data from records, annual
reports of the company etc. The major source of data for this project was collected
through annual reports, profit and loss accounts, some more information
collected from internet, journals and text books.
 Data Analysis
Classification & tabulation transforms the raw
data collected through questionnaire in to useful
information by organizing and compiling the bits
of data contained in each questionnaire i.e.,
observation and responses are converted in to
understandable and orderly statistics are used to
organize and analyze the data.
 Results and Discussion
• In this study I tried to find out the impact of FDIs and FIIs on Indian
Stock Market .the important result of this study is that the foreign investment
is determined by stock market return. But foreign investment is not a major
factor for the stock market boom in India the FII are increasingly dominant in
the stock market. The domestic investors and domestic companies remain not
so dominant. There is therefore the fear of sudden outflows of the foreign
capital and this may be a trigger a third stock market scam as most regulatory
changes are being made only as a follow up of an adverse event.
• Some of the steps that can be taken to help influence the choices made
by foreign institutional investors include:
• The Government should cut its fiscal deficits, which would result in
strengthening the economy as a whole.
• An attempt should be made to bring down the inflation level to attract
more foreign institutional investments into India.
 Findings and conclusions
It is an accepted fact now that FIIs have significant influence on the
movements of the stock market indexes in India. If one looks at the
total FII trade in equity in India and its relationship with the stock
market major indexes like Sensex and Nifty, it shows a steadily
growing influence of FIIs in the domestic stock market.
The three states together have accounted for nearly 62% of the total
FDI inflows received over the last 10 years, because of better
infrastructure, more number of mergers and acquisition of
companies in these regions, more number of software companies.
FDI in China was 185.08 US billion $ which was very higher than
that of India which was only 24.15 billion US $. With metallurgical
industries being a top sector attracting FDI followed by chemicals,
trading, industrial machinery and computer software and hardware.
 Findings and conclusions..contd…
•A perceived slowdown in the process of reforms generates
doubts about the market’s long-term potential. To capitalize on its
potential for FDI, would seem that India needs to accelerate
efforts to institutionalize government efficiency and advance the
implementation of promised reforms. Other strategic efforts
should include focusing the market on India’s relatively higher
rates of return on existing investments and long-term potential,
addressing the issue of transforming the country into a viable
export platform and encouraging strategic alliances with foreign
investors. In short, this means accelerating India’s integration
with the global economy.
Further scope of Investigation, if any
I have learnt a lot what I did not know before through finishing
this report, which enrich my learning experience and broaden
my horizon of working capital management. As is known to
all, there are still many tasks, which need us to solve.

The study of FDI occupies an important place in financial

management. The earlier emphasis of financial management
was more on a long-term financial decision. FDI, which is
concerned with short – term financial decision, appears to have
been relatively neglected in the literature of finance. Thus there
are lots of scopes to further study of the Role of FID in India.
 THE END

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