FDI

About FDI and 2014 statistics

10/2/15

Akhil Yerawar, IIM Raipur

Introduction
FDI
critical driver of economic growth
non-debt financial resource
Benefits for foreign companies
take advantage of cheaper wages,
special investment privileges like tax
exemptions, etc.

10/2/15

Akhil Yerawar, IIM Raipur

Benefits of FDI for India

achieving technical know-how
generation of employment

10/2/15

Akhil Yerawar, IIM Raipur

Recent relaxation of FDI

relaxing FDI norms across sectors
such as
Defense
PSU oil refineries
Telecom
power exchanges
stock exchanges, among others

10/2/15

Akhil Yerawar, IIM Raipur

Market Size
This, according to Moodys, is due to
Indias current pro-growth policies.
Net FDI inflows totaled US$ 14.1
billion in the first five months of
2014-15, representing a 33.5 per
cent increase from the same period
in 2013-14.

10/2/15

Akhil Yerawar, IIM Raipur

Investments
The Department of Industrial Policy
and Promotion (DIPP) has moved a
Cabinet note to allow 100 per cent
FDI in medical devices as part of a
strategy to not only reduce imports
but also promote local manufacturing
for the global market, which will be
worth over US$ 400 billion next year.
10/2/15

Akhil Yerawar, IIM Raipur

Investments
Apple - world's most admired
electronics brand - that sells devices
such as the iPhone, iPad tablet and
iPod media player is planning to
open 500 'iOS' stores in India in its
first major push that will include
moving into smaller towns and cities.

10/2/15

Akhil Yerawar, IIM Raipur

Investments
With India now allowing 100 per cent
FDI in the construction sector, real
estate private equity investment
could double and boost demand
from overseas property buyers,
according to sector experts.

10/2/15

Akhil Yerawar, IIM Raipur

Government Initiatives
Indias cabinet has cleared a
proposal which allows 100 per cent
FDI in railway infrastructure,
excluding operations. Though the
initiative does not allow foreign firms
to operate trains, it allows them to
do other things such as create the
network and supply trains for bullet
trains etc.
10/2/15

Akhil Yerawar, IIM Raipur

Government Initiatives
The Union Cabinet has cleared a bill
to raise the foreign investment
ceiling in private insurance
companies from 26 per cent to 49
per cent, with the proviso that the
management and control of the
companies must be with Indians.

10/2/15

Akhil Yerawar, IIM Raipur

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Government Initiatives
With the objective of encouraging
foreign firms to transfer state-of-theart technology in defence production,
the government may increase the
FDI cap for the sector to 74 per cent
from 49 per cent at present.

10/2/15

Akhil Yerawar, IIM Raipur

11

Road Ahead
Foreign investment inflows are
expected to increase by more than
two times and cross the US$ 60
billion mark in FY15 as foreign
investors start gaining confidence in
Indias new government

10/2/15

Akhil Yerawar, IIM Raipur

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Road Ahead
India will require around US $1 trillion
in the 12th Five-Year Plan (201217),
to fund infrastructure growth
covering sectors such as highways,
ports and airways. This requires
support in terms of FDI.

10/2/15

Akhil Yerawar, IIM Raipur

13

Road Ahead
The year 2013 saw foreign
investment pour into sectors such as
automobiles, computer software and
hardware, construction development,
power, services, and
telecommunications

10/2/15

Akhil Yerawar, IIM Raipur

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