Foreign Direct Investment in India | MBA it Colleges in Bangalore

Posted by Dr. Dinesh Mahajan On 24/02/2023 07:08:23

Introduction: Foreign direct investment (FDI) is playing very crucial role in the development of developing nations. FDI is the process whereby residents of one country (the source country) acquire ownership of assets in another country (the host country) for the purpose of controlling the production, distribution and other activities of a firm in that country. According to the World Investment Report released by the United Nations Conference on Trade and Development (UNCTAD), India remained among the top 10 (India rank: 7) global economies for FDI in 2021. mba in data analytics in bangalore

Relevance of FDI in India: The investment climate in India has improved a lot since 1991 when the government opened up the economy and initiated the Liberalisation, Privatisation and Globalisation (LPG) strategies. Foreign corporations invest in India to benefit from the country's particular investment privileges such as tax breaks and comparatively lower salaries. This helps India develop technological know-how and create jobs. These investments have been coming into India because of the government's supportive policy framework, vibrant business climate, rising global competitiveness and economic influence. online mba colleges in bangalore

Current Scenario of FDI in India: India's FDI inflows have increased 20 times from 2000-01 to 2021-22. According to the Department for Promotion of Industry and Internal Trade (DPIIT), India's cumulative FDI inflow stood at US$ 871.01 billion between April 2000-June 2022; this was mainly due to the government's efforts to improve the ease of doing business and relaxed FDI norms. 

The total FDI inflow into India from January to March 2022 stood at US$ 22.03 billion, while the FDI equity inflow for the same period was US$ 15.59 billion. From April 2021-March 2022, India's computer software and hardware industry attracted the highest FDI equity inflow amounting to US$ 14.46 billion, A++ Rated MBA college in Bangalore followed by the automobile industry at US$ 6.99 billion, trading at US$ 4.53 billion and construction activities at US$ 3.37 billion. India also had major FDI flows coming from Singapore at US$ 15.87 billion, followed by the US (US$ 10.54 billion), Mauritius (US$ 9.39 billion) and the Netherlands (US$ 4.62 billion). mba colleges in bangalore list

The state that received the highest FDI during this period was Karnataka at US$ 22.07 billion, followed by Maharashtra (US$ 15.43 billion), Delhi (US$ 8.18 billion), Gujarat (US$ 2.70 billion) and Haryana (US$ 2.79 billion). In 2022 (until August 2022), India received 811 Industrial Investment Proposals which were valued at Rs. 352,697 crores (US$ 42.78 billion). This shows the rising stature of India in the global economy. mba in project management in bangalore

Government Initiatives for promoting FDI: The Government has initiated a liberal and transparent policy for attracting Foreign Direct Investment (FDI), wherein most sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route. Subject to the provisions of the FDI Policy, foreign investment in the 'manufacturing' sector is under automatic route. Manufacturing activities may be either self-manufacturing by the investee entity or contract manufacturing in India through a legally tenable contract, whether on a Principal or Principal Agent basis. Further, a manufacturer is permitted to sell its products manufactured in India through wholesale and/or retail, including through e-commerce, without Government approval. mba colleges in bangalore list

Conclusion: FDI is playing a crucial role in the development of developing economies. The Government of India has taken various effective measures to increase FDI. The reform measures include liberalization of guidelines and regulations, in order to reduce unnecessary compliance burdens, bring down costs, and enhance the ease of doing business in India. This gives a boost to FDI. There is a further need to liberalize the economy to establish a manufacturing base in India which will help in employment generation and make the country economically strong. A++ Rated PGDM college in Bangalore

See Also:


IIBS Bangalore Welcome you to experience the superior professionalism and CSS - Cultural Connection as you pass through IIBS and let the change begin within you through IIBS.