3. Foreign Direct Investment (FDI) In India
was introduced in the 1991 under the
Foreign Exchange Management Act
(FEMA) implemented by the then Finance
Minister, Dr. Manmohan Singh.
It commenced with the baseline of 1
billion dollars in 1990.
4. A foreign direct investment (FDI)
is an investment in the form of a
controlling ownership in a
business in one country by an
entity based in another country. It
is thus distinguished from a
foreign portfolio investment by a
notion of direct control.
6. Foreign company purchases
shares or debentures of Indian
company and invests in the Indian
Foreign company comes to India
and establish their own company
7. 1. Upgradation of Technology.
2. Improvement in Export Competitiveness.
3. Human capital development.
4. Increased Competition.
5. Creation of a competitive market.
6. Exchange rate stability.
7. Increment in Income.
8. Increased productivity.
8. 1. Hindrance to Domestic Investment.
2. Risk of Political Change.
3. Higher cost.
4. Economic non-viability.
5. Poor Performance.
6. Increase in Pollution.
10. Foreign direct Investment can lead to
beneficial restructuring of the entire
industry, including opportunities for better
performing local participant.