Foreign Direct Investment in India

EENI- School of International Business

Sub-subject: Foreign direct investment (FDI) in India. Syllabus:

1. Foreign Direct Investment (FDI) in India (economic area of the Hindu Civilisation)
2. Investment policy
3. Investment opportunities and incentives in India
4. Top India Sectors Attracting FDI
   1. Electrical
   2. Services
   3. Telecommunications
   4. Transport
   5. Information Technology
5. Entry options for foreign investors
6. Taxes in India

Sample of the Sub-subject: Foreign Direct Investment (FDI) in India

Description of the Sub-Subject: FDI in India

India has become a global resource for various manufacturing and services industry.

The sole and huge geography of India gifted with different topography, has made India one of the most attractive foreign direct investment destinations in the World.

1. With the biggest area of arable land, India is one of the largest food producers in the World.
2. India is the largest manufacturer of milk, sugar-cane, and tea as well as the second largest manufacturer of rice, fruit, and vegetables.
3. The pool of technical human resources base of India with an increasing disposable revenue and its burgeoning market have all combined to enable India to emerge as a viable partner to the global industry.
4. India is the preferred hotspot for organisations keen to outsource their R and D activities, software development work, customer contact centres or Information Technology enabled business processe.
5. The top sectors attracting the highest Foreign direct investment inflows into India are the electrical equipment, services sector (financial and non-financial), telecommunications, transport industry, fuels, chemicals, construction activities, drugs and pharmaceuticals, food processing, cement, and gypsum product.
6. Huge investment potential exists in the upcoming Knowledge Process Outsourcing sector and the real estate industry.
7. Thus, India is one of the few markets in the World, which offers high forecasts for economic growth and earning potential in practically all fields of business, especially in tourism, information technology, and agricultural sector.
8. New Delhi, Mumbai, Bangalore, Gujarat, Andhra Pradesh, and Chennai are the main destination for the foreign direct investment (FDI) inflow.
9. Maharashtra and the National Capital Region accounted for more 50% of the foreign direct investment (FDI) inflows into India.
10. Foreign direct investment (FDI) is welcome in nearly all the areas, excluding those of strategic concern (for instance, defence and atomic energy)
11. The Indian Government has recently passed a Special Economic Zones Bill.
12. All Intellectual Property Rights laws are TRIPS (Trade-Related Aspects of the intellectual property rights) compliant with a completely functional Intellectual Property Appellate Tribunal.

To promote flow of investment into India, the Government of India has set up several investment facilitation agencies, which include:

1. The Foreign Direct Investment Promotion Board
2. The  Foreign Direct Investment Implementation Authority
3. The  Investment Commission
4. The  Secretariat for Industrial Assistance
5. The Indian Brand Equity Foundation

Sectors, where Foreign direct investment (FDI) is not allowed, are limited to Railways, Atomic Energy and Atomic Minerals, Postal Service, Gambling and Betting, Lottery, and basic agriculture or plantations.

Economy of India - Haryana - India's FTA