FOREIGN DIRECT INVESTMENT

Submitted BY:- Submitted To:-

Chinmay Kavadiya Proff. Hiral Sonkar
Shashank Pandey
 Foreign Direct Investment

A foreign direct investment is an investment

in the form of a controlling ownership in a
business in one country by an entity based in
another country
Types Of FDI

• Horizontal FDI

• Vertical FDI

• Platform FDI.
Role OF FDI In Global Economy

• Economic development

• Improve its infrastructure

• Increase productivity

• Increase employment.
Global FDI flows, 1999-2021
 Indian History of FDI

• FDI was introduced in 1991 by Dr. Manmohan Singh

• For buying & expanding business

• For economic growth of the country

 Role Of FDI In Indian Economy
• Foreign direct investment in India is a major monetary
source for economic development in India

• Non-debt financial resource for India's economic development.

• India's FDI inflows have increased 20 times from 2000-01 to

2021-22.
FDI Inflows
Inflow of FDI in India
Major Source Of Inflow Of FDI IN INDIA
 Current Scenario of FDI in India
• India received the highest annual FDI inflows of $84,835 mn in FY 21-22
overtaking last year’s FDI by $2.87 bn. Also, FDI equity inflow in FY 2021-
22 were $ 59,825 mn.

• FDI Equity inflow in Manufacturing Sectors have increased by 76% in FY

2021-22 ($ 21.34 bn) compared to previous FY 2020-21 ($ 12.09 bn). 

• In FY 2014-15, FDI inflow in India stood at mere $ 45.15 bn, which

increased to $ 60.22 bn in 2016-17 and further to the highest ever annual
FDI inflow of $ 83.57 bn reported during the FY 2021-22.
 Case Study Base On
FDI - Textile Industry
 Industry Overview of Textile Industry

• Listed largest amongest India’s textile industry

• Diverse and Manufactures a wide range of segments
• Second-largest employment generating sector
• Largest procedure of cotton and jute
 CURRENT SCENARIO of Textile Industry
• The company is set out on the path to become an upcoming brand
with quality clothes.
• The company has a recycling system in place that gives its brand
an environmental friendly voice.
• The company currently employees over 3,000 people and is
reaching its mark of around 5,000.
 Textile Industry Scenario

• From $103.4 billion in 2020-21, the textile and apparel sector will
grow to $190 billion by 2025-26.
• The sector's share in India's GDP is 2 percent.

• The $75 billion in domestic consumption was split between

clothes ($55 billion), technical textiles ($15 billion), and home
furnishings ($5 billion).
 India's textile
market size (US$
billion)
 Conclusion
• FDI can lead to a beneficial restructuring of the entire industry,
including opportunities for better-performing

• FDI is an appealing concept through which companies progress

and enter into new markets as a result of globalization.
Thankyou...