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  • FDI and FII

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    FDI involves foreign entities acquiring controlling stakes in Indian companies and operating them as part of multinational businesses, while FII represents non-controlling investments like stocks and bonds of foreign companies. FDI benefits India through job creation, technology transfers, and foreign capital inflows, while increasing competition and efficiency. FII can appreciate the rupee, boost exports and stock markets, but also inflation. Both are regulated differently and impact the economy, though too much of either could be harmful.

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    FDI involves foreign entities acquiring controlling stakes in Indian companies and operating them as part of multinational businesses, while FII represents non-controlling investments like stocks and bonds of foreign companies. FDI benefits India through job creation, technology transfers, and foreign capital inflows, while increasing competition and efficiency. FII can appreciate the rupee, boost exports and stock markets, but also inflation. Both are regulated differently and impact the economy, though too much of either could be harmful.

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    10 views10 pages

    FDI and FII

    Uploaded by

    srinivasbiotech
    FDI involves foreign entities acquiring controlling stakes in Indian companies and operating them as part of multinational businesses, while FII represents non-controlling investments like stocks and bonds of foreign companies. FDI benefits India through job creation, technology transfers, and foreign capital inflows, while increasing competition and efficiency. FII can appreciate the rupee, boost exports and stock markets, but also inflation. Both are regulated differently and impact the economy, though too much of either could be harmful.

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    of 10

    FDI and FII

    Impact on Indian Economy

    Presented by:
    Purbadri Das
    Debanil Chakraborty
    Dutta Bijoya
    Vinay Tharakan
    FDI (Foreign Direct Investment)
    FDI occurs when an entity or investor from
    one country (home country e.g. India) obtain
    or acquires the controlling interest in an entity
    in another country (host country e.g. USA) and
    then operates and manages the entity and its
    assets as part of the multinational business of
    the investing entity.
    FII (Foreign Institutional Investor)
    FII is a category of investment instrument that
    are more easily traded, may be less
    permanent, and do not represent a controlling
    stake in an enterprise, these include
    investment via equity instrument (stocks) or
    debt (bonds) of a foreign enterprise which
    does not necessarily represent a long term
    interest.
    Regulatory Body of FDI
    • Reserve Bank of India

    • Ministry of Finance

    • FIPB
    Impact of FDI on Indian Economy
    1. Creates employment opportunity for domestic country.
    2. Good relationship between two countries.
    3. Modern technology.
    4. Inflow of foreign funds in Indian Economy.
    5. To provide the goods and services at best suitable prices.
    6. It creates the competition among the domestic company and MNC.
    In this way domestic companies increase their efficiency.
    7. Indian companies get the chance to work as a professional body.
    8. Indian companies get the chance to work with World Market
    Leader Companies.
    9. Backward areas can be developed.
    10. Creating good capital market in India.
    11. Government earns in the form of license fees, registration fees and
    taxes which is spend for public expenditure.
    Impact of FII on Indian Economy
    1. FII leads to appreciate currency
    2. FII and exports
    3. FII and stock market
    4. FII and inflation
    5. FII and local companies
    6. Capital formation in Domestic Market
    Factors affecting the FII
    • Interest Rate of the country
    • Money Supply and Inflation Rate
    • Exchange Rate of the country
    • BOP
    • Economic Growth
    Difference between FDI and FII
    • Meaning
    • Entry & Exit in Stock Market
    • Stability
    • Types of Market
    • Types of Investment
    • Source
    • Regulatory Body
    • Purpose
    How much of FDI & FII too much
    for Indian Economy?
    Thank You

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