Foreign direct investment (FDI) brings investment from other countries into India. Regulations require FDI in retail to invest only in large cities, source 30% of materials locally, and invest 10% in infrastructure. FDI benefits India through revenue, job creation, technology transfer, and development of sectors like infrastructure, energy, and more. The limits on FDI by sector range from 26% to 100%. In 2015-16, the largest sources of FDI were services, telecom, and trading. Global FDI projections see continued growth in India through 2016.

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Introduction
To
Foreign Direct Investment

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Introduction
 Foreign Direct Investment as the name suggests brings in investments in India
from other countries, therefore money
 Companies outside India, seeing an opportunity for growth in India invest in
Indian Companies in form of FDI
Regulations to invest in India (FDI in retail)
Regulations are in place so that there can be no monopoly of foreign players in
India’s regional market
 Should invest only in cities with a population more than One million
 Should buy 30% of the raw material from indigenous players
 Should invest 10% in back end ( infrastructure etc)

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How FDI helps
Revenue - The company investing in India brings in revenues which can be utilised to
develop and carry forth various projects
Employment - India has 65% of its population in the age group 20-35 which is
the working productive age
Technology - The companies bring with them research opportunities and new
technologies from their land
Culture - Folks from various corners of the world come with unique cultures
which helps to delve into their culture, understand them.
Development of sectors like Infrastructure, Solar energy, Energy etc.
Standard of living is improved leading to an improvement in the quality of life

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How Much FDI is Allowed..?
Sector Limit
Agriculture 100%
Civil aviation 100%
Courier service 100%
Credit rating 74%
Defence 100%
Education 100%
FM radio 26%
Insurance 49%
Multi-brand 51%
Pension 49%
Pharma 100%
Power 49%
Sector Limit
Print media 26%
PSBs 20%
Private Banks 74%
Railway infrastructure 100%
Single Brand 100%
Stock Exchange 49%
Telecom 100%
Tourism 100%
Food products 100%
Private Security 49%
Other financial Services 100%

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Current FDI Investments in India
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
General
Service
Real Estate IT Telecom Auto Pharma Chemicals Trading Energy Hotel &
Tourism
% FDI Inflow – Investment into the Industry
% of total FDI for 2015-16 % of total cumulative FDI inflow since April-2000

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Global FDI Rankings
107 114
129
31
52
7
68 73
59
35
380
175
136
101
73 69 65 65
49 44
0
50
100
150
200
250
300
350
400
US Hong Kong China Ireland Netherlands Switzerland Singapore Brazil Canada India
FDI Rankings
FDI inflows in 2014 (in $ bn) FDI inflows in 2015 (in $ bn)

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FDI Growth Projections
6.3
6.4
5.9
6.5
7
6.3
IMF World Bank UN
Growth Projections for India
2015 2016

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