Research Report on FDI

RESEARCH RESEA RCH PROJECT PRESENT PRESENTA ATION

IMPACT OF FOREIGN DIRECT INVESTMENT ON INDIAN ECONOMY

GIVEN BY B Y: ASHISH SRIVASTAVA Student, MBA (4th Sem.) LKCE,Ghaziabad SESSION: 2007-2009 ROLL NO: 0722470013

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Ashish Srivastava MBA Final Year.

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OBJECTIVE OF THE STUDY        

To analyze and examine the impact im pact of foreign investment pattern on Indian economy. To gain familiarity with Foreign Direct Investment patterns. To compare the position of FDI inflows in India. To analyze and evaluate the Govt. policy towards FDI. To summarize and compare the situation of Indian Economy Econom y before & after liberalization. To make suggestions for attracting more FDI inflows in India. To know the various promotional measures given by government to promote FDI in India. To fulfill the partial requirements of academic academ ic curriculum of MBA.


AsAhsih sh i sh SrSivra ivsats atvaava MM BA BA FiF nianlaYl eYaera. r.

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IMPORTANCE OF THE STUDY      

The transfer of technology which may enhance domestic innovation; The transfer of management know-how and skills leading to the development Of human capital; Access to markets otherwise denied the country; coun try; The stimulation of competition in the domestic economy, thereby enhancing Productivity and reducing inflationary pressures; The integration of the domestic economy with international supply chains.



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RESEARCH METHODOLOGY: Types of Research: Descriptive Research Primary Sources Primary sources are taken as those which are latest, self analyzed and from which own thinking has been used. Here primary sources are not used. Secondary Sources The prime sources of secondary data are SIA newsletter, RBI bulletins, FICCI reports, Human Resource Development reports, CII survey reports, etc. Internet has also remained as an important source of secondary data. The reference period for the purpose of analyzing trends of FDI flows into India is primarily is set into three groups: (i) 1989-94, (ii) 1995-99 & (iii) 2000-07. REVIEW OF LITERATURE: the reports on earlier FDI level & current FDI level are reviewed. Also, various other journals & Govt. published reports are reviewed. This is done to understand better the FDI level & reasons Wednesday, Wednesday W ednesday, A April pril 07, 07, 2 2010 010


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Slide 4 N1

NeerajMBA, 5/28/2009

ANALYSIS OF DATA

India has lowered its tariffs gradually with the passage of time i.e. after the liberalization phase. Wednesday, Wednesday W ednesday, A April pril 07, 07, 2 2010 010


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Increase in trade along a long with the growing GDP of India Wednesday, Wednesday W ednesday, A April pril 07, 07, 2 2010 010


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In the year 1997, industries already started getting foreign direct investment. Wednesday, Wednesday W ednesday, A April pril 07, 07, 2 2010 010


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As the share of investment in Indian industry increases by foreign firms, its increases year by year. Wednesday, Wednesday W ednesday, A April pril 07, 07, 2 2010 010


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With the liberalization phase, both exports and imports increased sharply due to approval in different percents by different states to foreign investors.



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How much FDI is approved by states and how much inflow is there and how it affects trade in all can c an be understood by above graphs. Wednesday, Wednesday W ednesday, A April pril 07, 07, 2 2010 010

As AhsihsihshSS rivriavsatsatvaavaMM BA BAFiFnianlaYl eYaera. r.

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Economist analyze the relationship among FDI and trade t rade across the states in India and It has been observed that both are correlated positively i.e. if one factor increases than other increases automatically automatically,, which can be proved from above graph. Wednesday, Wednesday W ednesday, A April pril 07, 07, 2 2010 010


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FINDINGS OF STUDY  FDI inflows to India are significantly higher than th an that of other members of SAARC.  There have been overall growths of FDI inflows to India Ind ia after Independence or major after initiation of economic reforms in1991.  FDI depends upon market size, market openness, infrastructure, GDP level, level, skilled labor, lab or, inflation, level of exports and literacy.  The pattern of FDI in terms of country, industry and sector has undergone a significant change during the last decade.  FDI climate in India has improved in recent years. Wednesday, Wednesday W ednesday, A April pril 07, 07, 2 2010 010


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CONCLUSIONS  Foreign Direct Investment Is Better For The Growth Of any Country.  Foreign Direct Investment Is Better For The Developing Countries.  Foreign Direct Investment Is Risk Oriented.  Foreign Direct Investment Is better for the th e Investors to invest the money In Foreign Business.  Foreign Direct Investment Is Better For The Retail Marketing.  Foreign Direct Investment Is Better For The Small Smal l Scale Industries.



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RECOMMENDATIONS A multi-tiered strategy that seeks to move more foreign investors from their present position, which is largely characterized by ignorance, through expressions of interest, to committed investment in India is therefore proposed. This requires that we not only develop a more effective communication strategy, strategy, and expand attempts to develop a subjective preference for India, but that we also reduce the risks associated as sociated with investment through more coherent and consistent policies. We also need to recognize that it is projects, rather than countries, into which w hich investment is ultimately made.



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LIMITATIONS OF THE RESEARCH  The topic is very wide and has to be covered in limited words. Therefore, Therefore, it is not possible to cover all al l other related issues.  The help from faculty is not enough due to their busy schedule.  Proper source of information from Govt. could not be provided.  Only internet, magazines and various surveys are available.  Questionnaire cannot cannot be created due to the limitation of subject.  Scope of study is quite large but the time is limited.  Complexity of export and import documentation procedure



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BIBLIOGRAPHY 1. Websites visited-

www.economictimes.com www.rbi.org.in, etc. [email protected] www.oecd.org www.rbi.org.in mba.nic.in/fcra/intro/forms.html www.google.com www. yahoo yahoo.com .com www.ragadirect.com www.indiainfoline.com www. infoindia.com www. mouthshut.com 2. BooksUsha Bhatt (2006), Foreign Direct Investment Contemporary Issues. Foreign Direct Investment By A.K Chandra C.R. Kothari(2004) Research Methodology 3. Journals>Economic Journals .4. Reports>CII survey reports >FICCI survey reports. 5. Newsletters & Bulletins>SIA newsletters >RBI buttetins. MAGAZINE Business India Business today Wednesday, Wednesday W ednesday, A April pril 07, 07, 2 2010 010


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Research Report on FDI

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