‘Impact of FDI in India’

Group No. 3
Ankita Madke, M18092
Arshis Balsara, P18005
Aqib Rawoot, M18104
Aumkar Mokashi, M18028
Gaurav Fase, M18009
Harshal Kachole, M18083
Madhura Joshi, M18019
Mohak Raitani, M18041
Rushabh Bhanamagi, P18007
Rohit Lad, M18088
ROADMAP

FUTURE
BEFORE
1991-2001 2001-2011 2011-TODAY EXECTATION
1991
S
BEFORE 1990
 The Indian Investment centre was
established in 1961to attract more foreign
investment
 By the 1970`s the policy was more
restrictive due to the MRTP act and
nationalization of Banks
 FERA 1973 opened up the markets,
however foreign ownership was capped to
40%
 The policies gave rise to the term Hindu
Growth Rate since foreign investments
were at a minimal
FROM 1990- 2000

NET FDI AS A PERCENT OF GDP

1
 Implementation of LPG lead to a paradigm shift by
0.9
allowing upto 51% of FDI introduced in 34 priority
sectors. 0.8
0.7
 In Jan 1992 the mining sector was open to FDI. In
0.6
1997 it was further liberalized to cover upto 74%
0.5
in services incidental to mining
0.4
 In 1993, NRI Investors were allowed to contribute.
0.3
In 1997, NRI and OBCS were given auto approval.
0.2
 In 1998, RBI made reforms to simplify the auto
0.1
approval process 0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
 FERA was replaces with FEMA, signifying a
political change towards FDI SOURCE- WORLD BANK GROUP
FROM 2000-2010
 The dividend balancing condition on
consumer goods was finally abolished
4
NET FDI AS A PERCENT OF GDP
 In March 2005, 100% FDI was allowed in
townships, housing, built‐up infrastructure 3.5
and development projects
3
 Special Economic Zones Act came into
2.5
force on Feb 2006
2
 100% FDI was allowed in MRO and mining
1.5
of titanium bearing minerals in 2009
1
 Hike in the ceilings on public sector oil
refineries 0.5

 Foreign investors were exempted from 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
minimum capitalization and a three year SOURCE- WORLD BANK GROUP
lock-in period
FROM 2010-CURRENT

 During 2014–16, India received most of its FDI

from Mauritius, Singapore, Netherlands, Japan NET FDI AS A PERCENT OF GDP
and the US 2.5

 On 24 May 2017, Foreign Investment Promotion

2
Board was scrapped by the Union Government
 Processing of applications shall now be handled 1.5
by the concerned Ministries/Departments in
consultation with DPIIT 1

 FDI limit in insurance sector was raised from

0.5
26% to 49% in 2014
 During year 2013–14, FDI in textile sector was 0
2010 2011 2012 2013 2014 2015 2016 2017 2018
increased by 91%
NET FDI AS A PERCENT OF GDP
SOURCE- WORLD BANK GROUP
THE STORY SO FAR

CITIES WITH TH E MOST FDI SECTORS HAVING THE MOST FDI

7% 13%
SERVICES SECTOR
10% COMPUTER
MUMBAI SOFTWARE &
NEW DELHI 13% 38% HARDWARE
BANGALORE 42% TELECOMMUNICATIO
CHENNAI 13% NS
AHEMDABAD CONSTRUCTION
DEVELOPMENT
TRADING
17%

29%
SOURCE- DIPP FDI FACTSHEET 19%
SOURCE- DIPP FDI FACTSHEET
GLOBAL FDI INFLOWS

COUNTIRES WITH THE MOST FDI INFLOWS IN INDIA AS ON SEPT 2019 (IN US $ MILLION)
160,000.00

140,000.00

120,000.00

100,000.00

80,000.00

60,000.00

40,000.00

20,000.00

0.00

SOURCE- DIPP FDI FACTSHEET

FUTURE

 FDI equity inflows in India in 2018-19 stood at

US$ 44.37 billion, indicating that government's
effort to improve ease of doing business and
relaxation in FDI norms is yielding results
 VMware, has announced investment of US$ 2
billion in India between by 2023
 CG Group is looking to invest Rs 1,000 crore
(US$ 155.97 million) in India by 2020
 International Finance Corporation (IFC), is
planning to invest about US$ 6 billion through
2022 in several sustainable and renewable
energy programmes
GOVERNMENT SUPPORT AND INCENTIVES

 As of 2019, the Government of India is

working on a road map to achieve its goal of
US$ 100 billion worth of FDI inflows
 Government of India is planning to consider
100 per cent FDI in Insurance intermediaries
in India to give a boost to the sector and
attracting more funds
 No government approval will be required for
FDI up to an extent of 100 per cent in Real
Estate Broking Services
 Government of India allowed 100 per cent FDI
in single brand retail through automatic route
THE ROAD AHEAD

 India has become the most attractive

emerging market for global partners by
Emerging Market Private Equity
Association (EMPEA)
 UBS states that the annual FDI inflows in
the country are expected to rise to US$ 75
billion over the next five years
 The World Bank has stated that private
investments in India is expected to grow
by 8.8 per cent in FY 2018-19 to overtake
private consumption growth of 7.4 per
cent
Thank