FDI INFLOWS TO INDIA SINCE 2014-19

BY : RESHMA RAUL – MS1819072

MAHIMA GOTEKAR – MS1819021
FOREIGN DIRECT INVESTMENT (FDI)
• Foreign direct investments (FDI) are
investments made by one company
into another located in another
country.
• Horizontal, vertical, and
conglomerate are types of FDI’s.
Horizontal is establishing the same
type of business in another country,
while vertical is related but different,
and conglomerate is an unrelated
business venture. 
FDI IN INDIA
SECTORS ALLOWED SECTORS NOT ALLOWED
Agriculture & Animal Husbandry Lottery Business
Plantation Sector, E-Commerce Gambling and Betting, Chit Funds,
Nidhi Company
Petroleum & Natural Gas, Mining Manufacturing of Cigars, Cigarillos,
Cigarettes, Tobacco Products, etc.
Defence Manufacturing, Food Products
Broadcasting, Print Media
Asset Reconstruction Companies
Banking- Private Sector, and many
more
FACTORS AFFECTING FDI IN INDIA

FAVOURABLE FACTORS UNFAVOURABLE FACTORS

 Strong Economic Growth Poor Infrastructure
Huge Labour Force and High Educated Rigidity in the Labour Market
Workforce
Access to Capital and Institutional Legal Delays
Support
FDI INFLOWS TO INDIA SINCE 2014-19

YEAR-WISE FDI INFLOW

70000
64375
61963
60220
60000
55559

50000
45148

40000

30000

20000

10000

0
FDI INFLOWS (IN USD MILLION)

2014-15 2015-16 2016-17 2017-18 2018-19

FDI INFLOWS TO INDIA SINCE 2015-19
Sector-wise Inflow(Amt in USD $ Billion)
9
8
7
6
5
4
3
2
1
0
r ns n g ile ls ls
to tio in ica er
e c it o c a d ob it ca w
S ica r u
Tr m e u em Po
ce un st to ac Ch
vi n Au
Se
r
m
m Co rm
co Ph
le d
Te an
ug
Dr
2015-16 2016-17 2017-18 2018-19
COUNTRIES INVESTING IN INDIA
 On Top Countries like
Mauritius with total inflow
of US$ 13,145 Million for FY
2017-18

 Followed by Singapore US
$9,273 Million

 Netherland US $ 2,677
Million
REASONS BEHIND INCREASING FDI INFLOWS

• Wage Rates and Labour Skills

• Political Stability
• Potential Growth
• Exchange Rate
• Tax Benefits
BENEFITS TO INDIAN ECONOMY

• Economic Development
• Creation of Employment
Opportunities
• Technology Diffusion and
Knowledge Transfer
• Increase Competition and
standard of Living
RECENT NORMS TO PROMOTE FDI IN INDIA

• Revival of FDI Policy on Digital

Media, Manufacturing and Coal
Mining
• Revival of FDI Policies
• No Government approval for FDI
in Real Estate Broking Services
• Release of “National Digital
Communications Policy, 2018” and
Draft of “National E-Commerce
Policy”
Thank You!!!