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Foreign Direct Investment and SMEs in India

Conference Paper · April 2014

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Venkateswararao Podile Ch Hema Venkata Siva Sree

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from India to the global market, both Government of India and State Governments in India have been offering
a series of policy packages including tax breaks, import duty concessions etc. The rapid growth in the sector
is a consequen"" ol t igtrty skilled human resource, low wage structure, quality of work and the various policy
initiatives. The recent fall in FDI flow to the sector could be due to the turmoil prevailing in most of the
developed nations which are a big market for the Indian IT industry.
Key Words: Foreign Direct Investment, Hardware, Software.
* Assistant Professor, Department of Computer Science, Krishna University, Machilipatnam

FOREIGN DIRECT INVESTMENT AND SMES IN INDIA

* Dr. P.Venkateswara Rao ** Smt.Ch,Hema venkata sivasree
FDI plays an important role in any country's economical activities. Companies big or small cannot
solely depend on the conventional source of finance all together. For financial and technological support they
haveio dipend on foreign resources. For big companies getting FDI is not difficult issue because of financial
security, reach in global market and business experience but in SME/SSI it still an unsolved pttzzle or a
buzzword. The paper is concerned with one of the ways of contributing to strengthening the indigenous SME
sector in a situation of resource scarcity. Specifically, the paper is concemed with the potential role of FDI in
relation to the long term competitive development and inter-nationalisation of the SME sector in transition
and developing countries.
xProfessor & Head, P.G. Dept of Business Administration, M.M. Kalasala.
**Assistant Professor, P.G. Dept of Business Administration, M.M. Kalasala

IMPLICATIONS OF FOREIGN DIRECT INVESTMENT ON

INDIAN BANKING SECTOR
*Dr.D.Suryachandra Rao **K.Sankar Siddhgrtha

Foreign Direct Investment (FDI) is a direct investment into production or business in a country by an
individual or company of another country, either by buying a company in the target country or by expanding
operations of an eiisting business in that country. Foreign direct investment is an investment in the securities
oi another country suchis stocks and bonds. Foreign Direct Investment (FDI) is considered to be the lifeblood
of economic development especially for the developing and underdeveloped countries. In recent times, the
govemment has been pushing to increase the role of multinational banks in the banking and insurance sectors.
FDI in the banking sector has been liberalised by raising the FDI limit in private sector banks to 74 per cent
under the automatic route, including investment by foreign investors in India. Banking, as all of us know that,
is the major player in the economic system of any country. It is having the power to stabilize the economy by
regulating unO a" regulating the monetary flows in the country by following various methods. The country's
financial health is decided 6y the robustness of the banking system of the country. This paper discusses the
role of FDI and its implications in renderence of services by banks, how FDI is influencing, and what possible
changes will take place as a result of FDI in emerging nation like India.
* Professor, Krishna University
** Research Scholar, Krishna University
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FOREIGN DIRECT INVESTMENT IN SERVICES SECTOR
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 tzt. Foreign Direct lnvestment in Service Sector to Boost Seemandhra Economic Growth M
Mr. KMohan Rao, Research Scholar, Department of Sociology & Social Work,
Acharya Nagarjuna University.

122. Foreign Direct Investment and Infrastructure Development 45

Mr. Rajesh Chennam, MBA Student, Acharya Nagarjuna University, Guntur.

r23. Strategy for Economic Development and tr'oreign Trade Pmmotion in the North . Eastern Region 45
Dr.A.Sujalha" M.Com, MBA, M.Phil, Ph.D, Faculty, Department of
CommerceAnd Business Administration, Krishna University, P.G Center ,Nuzvid

124 Foreign Direct Investment in India's Retail Sector 45

M* KAnjali, MBA Student, Krishna University,

r25. FDIs in Indian Media anil Entertainment Industry: A Tryst with Innovation or Investment 46
DnC,M.Vinaya Kumar, Assistant Professor & Head (Vc),
Department of Journalism and Mass Communication, Krishna University , Machilipatnam.

126. Foreign Direct Investment in Computer Hardware and 46

Software sector in India: Opportunities and Challenges
Dr. RKiran Kumar, Assistant Professor, Department of Computer Science,
Krishna Universitv. Machilioatnam.

r27.7 Foreign Direct Investment and SMEs in India 47

v Dn P. Venkateswwa Rao, Professor & Head, P.G Dept. of Business Administration,
M.M. Kalasala
Smt.Ch. Hema venkata sivasree, Assistant Professor, P.G Dept. of Business Administration,
M.M. Kalasala

128. Implications of Foreign Direct Investment on Indian Banking Sector 47

Dr. D. Sury ac handra Rao, Professor, Krishna University, Machilipatnam.
Mn K Sankar Si.dilhartha, Research Scholar, Krishna University, Machilipatnam.

t29. Foreign Direct Investment in Indian Retail Sector 48

Mrs. K Madhari, Assistant Professor,
Ms.N.Sushma. Student. VRSEC

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