v India ranks 2nd most favored destination for
foreign investments after China.
v India ranks among the top 12 producers of manufacturing
value added (MVA).
v In textiles, the country is ranked 4th after China, USA and Italy.
v Ranked 5th in electrical machinery and apparatus.
position in the basic metals category
v 7th in
chemicals and chemical products
v 10th in leather, leather products, refined
petroleum products and nuclear fuel
v 12th in
machinery and equipment and motor vehicles.
v India’s large service industry accounts for more than 50%
of the country’s GDP.
v Attracted $3.12 billion FDI in the first seven months of
v 22 per cent of the total FDI inflows of $17.64 billion in
the April-October for service sector
v In 2008-09, attracted the maximum FDI worth USD 6.11
Current issues with FDI in Services Sector
v Very weak linkages of service sector with the Indian
economy (only few cities).
v Requires highly skilled workers.
v Employee Welfare in time of crisis.
FDI IN RETAIL- ADVANTAGES
v Generates huge
v Increased investment
v The huge tax revenue
v The consumer gains from the wide variety of choices and a
more diversified basket.
FDI IN RETAIL-DRAWBACKS
v Foreign Players would
displace the unorganized retailers because of their superior financial
v The entry of large
global retailers such as Wal-Mart would kill local shops and millions of jobs.
v Increase in real estate prices and marginalize domestic
v This sector shows an exponential rise in inflows from
v Total numbers of
20 technical and 1111 financial
collaborations have been approved since 2005.
v Trading for wholesale received highest percentage
(84.25%) of total FDI inflow followed by trading (for exports) with 9.04%,
e-commerce with (2.38%) during 2006-08 2008.
v Consultancy Sector received US$ 1.1 bn which is 1.14% of
total inflows received since 2008.
v Mumbai (38.76%) and New Delhi (13.01%) received major
percentages of inflow .
v Out of the 125 technology transfers, 40 technical
collaborations are approved with USA, 21 with UK, and 14 with Germany.
v 100% FDI is allowed in education sector.
v India with the added advantage of having large pool of
skilled people with secondary and tertiary level of education attracts foreign
firms in science, R & D, and high
technology products and services.
v The amount of FDI till Dec. 2008 is US$ 4.9 billion which
is 6.15% of the total inflows received .
v In India Delhi, Mumbai, and Hyderabad receives maximum
amount (viz. US$ 1245.61, 1000.5, and 943.22 billion) of investment.
v Out of the total
technology transfers ,9 technical and 223 financial collaborations have
been approved till December 2008
v FDI inflows during Jan
2005 to Dec. 2009 is US$ 3.2 billion which is 4.09% of the total inflows
v It ranks 5th in the list of sectors in terms of
cumulative FDI approved from August 1991 to Dec 2008.
v In India Mumbai, New Delhi and Ahmedabad received major
chunks of investment i.e. 36.98%, 26.63% and 9.47%).
COMPUTER HARDWARE AND SOFTWARE
v This industry fetched 3636 numbers of foreign
collaborations out of which, 125 are technical and 3511 are financial in
v Also it received US$ 8.9 billion which constitute 11.43%
of the total FDI inflows during the period during 2005-2007.
v Among Indian locations Mumbai received 22.44% of
investment followed by Bangalore (10.8%), and Chennai (9.90%).
v Telecommunication sector ranks 2nd in the list
of sectors in terms of cumulative FDI.
v Out of cumulative
FDI inflows , this Sector received an inflow of US$ 8.2 billion, which is 8.4%
of the total FDI inflows during last few years.
v New Delhi attracts
highest percentage (32.58%) of FDI inflows after 200511.1 INDIAN SECTORS ATTRACTING HIGHEST
Sectors Attracting Highest FDI Inflows are service, chemicals, food processing
and telecommunications. FDI inflows to different sectors in India have
increased over the years.Foreign direct investment
direct investment can increase the economic growth of a country and the
government of India realized this fact and this is the reason that it started a
series of financial and economic reforms in the country in 1991.In
2003, the Indian government started the second generation reforms in order to
increase the flow of foreign direct investment in the country which in turn,
helped to integrate the country’s economy with the economy of the world.Sectors
In INDIA That Are Attracting The Highest Amount Of FDIIndian
Sectors Attracting Highest FDI Inflows are many such as, electrical equipments,
telecommunication, fuels, food processing industries, and services. Further
the Indian Sectors Attracting Highest FDI Inflows are cement and gypsum
products, metallurgical industries, chemicals, and drugs and pharmaceuticalsAmount of Foreign Direct Investment In The Major
Sectors of India From August, 1991 To September, 2005:·
amount of foreign direct investment in the sector of electrical equipments was
US$ 4,266 million·
direct investment in the sector of transportation industry was US$ 3,070
in the service sector was US$ 2,840 million·
amount of foreign direct investment in the sector of telecommunications stood
at US$ 2,730 million·
amount of foreign direct investment in the sector of fuels that included oil
refinery and power came to US$ 2,505 million·
direct investment in the sector of chemicals was US$ 1,818 million·
amount of foreign direct investment in the sector of food processing industries
came to US$ 1,172 million·
to drugs and pharmaceuticals was US$ 936 million·
amount of foreign direct investment in the sector of cement and gypsum products
came to US$ 715 million
direct investment in the sector of metallurgical industries was US$ 544 million