Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
&
Foreign Institutional Investment
IN
INDIA
AGENDA
Foreign
Types
Investment
Of Foreign Investment
Significances
Limitations
Of Foreign Investment
Of Foreign Investment
Factors
Growth
Of Foreign Investment
Foreign Investment
FOREIG
N INVES
TMENT
Joint Venture
Acquisition
Foreign
Investment
Portfolio
Investment (FPI)
Investment By
FIIs
Investment In
GDRs,ADRs,FCCBs
What is it ?
Meaning of FDI
Types Of FDI
Significance of FDI
Meaning of FDI
1.
2.
3.
4.
5.
2006
2008
2011
Types Of FDI
Significance Of FDI
Financial
Transfer In
Foreign Exchange
Production
Technology
Management
Skills
Physical
Resources Like
Machinery Tools Equipment
Etc.
Institutional
System
Information
Worldwide
Research
Training
Trade
& Database
Contacts
& Development
Resources
Channels
Bureaucratic
Weak infrastructure
Today
Strong
Encouraging
Foreign Investment
Outsourcing Destination
Growing
Impetus
Consumerism
On Infrastructure Development
Emerging
large
Liberal
Gradual
High
Price
stability
Declining
trends
Good
Strong
Large
advertising media
FIPB Stands For Foreign Investment Promotion Board Which Approves All
Other Cases Where The Parameters Of Automatic Approval Are Not Met.
Its Approach Is Liberal For All Sectors And All Types Of Proposals, And
Rejections Are Few.
Foreign
Investors
FIPB
Industry
CCEA
CCFI
Ministry
SIA
Issues of
shares
Indian
Affiliate
RBI
Information About
FDI Receipt &
Share Issue
Existing Foreign-Indian
Partnership In India
Year
Foreign
Retailer
2003 Metro
2007
WalMart
2008
Tesco
2010 Carrefo
ur
Indian
Partner
______
Bharti
Tata
______
Type of
presence
Outlet Name
Number of
outlet
Metro Cash
Wholly
& Carry
owned
Joint venture Easy Day
Cash &
Carry
50000
46847 1.6
1.4
45000
41874
1.2
37745
40000
34847
34835
1
35000
0.8
30000
0.6
22826
25000
53%
52%
48%
0.4
40%
20000
34%
0.2
20%
15000
8961
0
0%
10000
6130 5035
6051
-8%
-8%
-14%
4322
4029
-18%
-0.2
5000
0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 -0.4
Foreign Retailers Can Now Open Their Shops In Only Cities With
Population More Than 1 Million (10 Lakh) Belonging To State And
Union Territories That Have Acceded To The Multi Brand Retail In
Their State
Retail Sector
FDI Offering
Releasing Stress
Increased Stress
Unproductive Way Response To
Banking Sector
95%
94%
92%
90%
88%
85%
5%
6%
8%
10%
12%
15%
40%
20%
0%
2010
2011
2012
Oragnized
2013
Column1
2014
2015
100%
80%
60%
85%
80%
15%
20%
40%
20%
0%
INDIA
CHINA
Column1
ORANIZED
205
243
96
For FDI
Anti FDI
Game Changer
205
304
35
For FDI
Anti FDI
Game Changer
Chit funds
Nidhi company
Activities / sectors not open to private sector investment e.g. Atomic Energy and
Railway Transport (other than Mass Rapid Transport Systems).
country.
Good
Inflow
It
Creating
Government
Meaning Of FII
Significance Of FII
Diversification
Of FII In INDIA
Of FII In INDIA
Advantages
Limitation
Impact
Of FII In INDIA
Of FII In INDIA
Of FII In INDIA
Meaning Of FII
Foreign Institutional Investment (FII)
Demand Potential
Revenue Potential
This Limit Of 24% Can Be Increased To Sectorial Cap/ Statutory Limit Applicable
To The Indian Company By Passing A Board Resolution/Shareholder Resolution
FIIs In Addition To Investment Under The FII Route Can Invest Under FDI Route
Advantages of FII
Enhanced
FIIs
Managing
FII
Improving
capital markets.
Advantages of FII
Disadvantages of FII
Problems
of Inflation
Problems
Adverse
Hot
impact on Exports
Money
Investment
For
These
70 : 30 Route
US $ 200 Million
Total Limit
US $ 1.75 Billion
For
US $ 1.55 Billion
US $ 500 Million.
Prohibitions On Investments
Nidhi Company
Trading
equity
10206.7
8072.2
2527.2
39959.7
44122.7
48800.5
25235.7
53403.8
-47706.2
110220.6
110120.8
2367.6
Debt. equity
-273.3
690.4
162.1
5805.0
1758.6
-7333.8
5604.7
12775.3
1895.2
32437.7
36317.3
8186.2
Total
9933.4
8762.6
2689.3
45674.7
45881.3
41466.7
30840.4
66179.1
-45811.0
142658.3
146438.1
10553.8
Differentiation Between
FDI & FII
FDI
1.
FII
It is long-term investment
2.
3.
4.
access
to
1.
2.
3.
5.
4.
6.
5.
7.
6.
8.
7.
9.
8.
Tends to be speculative
9.
10.
10. Abiding
interest in mgt.