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Types Types Of Of Foreign Foreign Investment Investment

Types Of Foreign Investment

Types Of Foreign Investment

Types Types Of Of Foreign Foreign Investment Investment Types Of Foreign Investment Types Foreign Investment

Significances Of

Significances

Of Foreign

Foreign Investment

Investment

Significances Of Significances Of Foreign Foreign Investment Investment     Cultural  Import 
    Cultural  Import  Growth
Cultural
Import
Growth

Expansion InIn Employment

Expansion

Employment

Government Government Benefits Benefits

Consumer Benefit

Consumer

Benefit

Competition Competition

Technological Improvement

Technological

Improvement

Managerial Managerial Revolution Revolution

Cultural Improvement

Improvement

Global Global Exposer Exposer

Import Export

Export

Global Global Relationship Relationship

Growth InIn Economy

Economy

Limitations Of

Limitations

Of Foreign

Foreign Investment

Investment

Limitations Of Limitations Of Foreign Foreign Investment Investment  Work On On The High Profit Areas
Limitations Of Limitations Of Foreign Foreign Investment Investment  Work On On The High Profit Areas

Work

Work OnOn The

The High

High Profit

Profit Areas

Areas Rather

Rather Than

Than

Priority Sector

Priority

Sector

Technological

Technological Advancement

Advancement

Evading

Evading Nature

Nature

Unfavourable

Unfavourable Effect

Effect Towards

Towards Balance

Balance Of

Of Payment

Payment

Limitations Of

Limitations

Of Foreign

Foreign Investment

Investment

Limitations Of Limitations Of Foreign Foreign Investment Investment  Interferes In In The National Politics 
Limitations Of Limitations Of Foreign Foreign Investment Investment  Interferes In In The National Politics 

Interferes

Interferes InIn The

The National

National Politics

Politics

Unfair&

Unfair& Unethical

Unethical Trade

Trade Practices

Practices

Bulldogging

Bulldogging Nature

Nature Towards

Towards Nation

Nation Market

Market

Unfavourable

Unfavourable For

For Countries

Countries Economy

Economy

Factors Affecting

Factors

Affecting Foreign

Foreign Investment

Investment

Factors Affecting Factors Affecting Foreign Foreign Investment Investment  Rate Rate Of Of Interest Interest 
Factors Affecting Factors Affecting Foreign Foreign Investment Investment  Rate Rate Of Of Interest Interest 

Rate Rate Of Of Interest Interest Speculation Speculation Profitability Profitability Costs Costs Of Of Production Production Economic Economic Condition Condition Government Government Policies Policies Political Political Policies Policies

Meaning of

Meaning

of FDI

FDI

1. 1.FDI 5. 5. FDI‘ The
1.
1.FDI
5.
5. FDI‘
The
2. 2.Foreign 3. 3.ItIt does 4. 4.FDI the whereas oror badly. badly.
2.
2.Foreign
3.
3.ItIt does
4.
4.FDI
the
whereas
oror badly.
badly.

FDI Means

FDI stands

stands for

for Foreign

Foreign Direct

Direct Investment,

Investment, aa component

component of

of aa

country's national

country's

national financial

financial accounts.

accounts.

Foreign direct

direct investment

investment isis investment

equipment, and

investment of

of foreign

foreign assets

assets into

into

domestic

domestic structures,

not include

structures, equipment,

include foreign

and organizations.

organizations.

into the

does not

foreign investment

more useful

investment into

the stock

stock markets.

markets.

FDI isis thought

thought toto bebe more

of its

useful toto aa country

country than

than investments

investments inin

the equity

equity of

its companies

companies because

money" which

because equity

can leave

equity investments

the first

first sign

investments are

are

sign of

potentially "hot

potentially

"hot money"

which can

leave atat the

of trouble,

trouble,

whereas FDI

FDI isis durable

durable and

and generally

generally useful

useful whether

whether things

things gogo well

well

Means Investment

Investment ByBy Non-resident

Indian Company

Non-resident Entity/Person

Under Schedule

Entity/Person Resident

Schedule 11 Of

Of Foreign

Resident Outside

Outside India

India InIn

The Capital

Capital Of

Of AnAn Indian

Company Under

Issue Of

Foreign Exchange

Exchange

Resident Outside

Management (Transfer

Management

(Transfer Or

Or Issue

Of Security

Security ByBy AA Person

Person Resident

Outside India)

India)

Significance Of

Significance

Of FDI

FDI

Significance Of Significance Of FDI FDI Etc. Etc.  Financial Transfer In In  Information 
Etc. Etc.
Etc.
Etc.

Financial

Financial Transfer

Transfer InIn

Information

Worldwide

Research

Training

Trade

Information && Database

Database

Foreign Exchange

Foreign

Exchange

Worldwide Contacts

Contacts

Production

Production Technology

Technology

Research && Development

Development

Management

Management Skills

Skills

Training Resources

Resources

Physical

Physical Resources

Resources Like

Like

Trade Channels

Channels

Machinery Tools

Machinery

Tools Equipment

Equipment

Institutional

Institutional System

System

Advantages Of

Advantages

Of FDI

FDI InIn INDIA

INDIA

 Quality
Quality

Existing

Existing

 Capital Country  Increased  Banking  Neutral
Capital
Country
Increased
Banking
Neutral

Retail Sector

Retail

Sector

FDI Offering

FDI

Offering

From The

The

Capital Inflow

Inflow From

Capital Inflow

Capital

Inflow From

From The

The Oversees

Oversees

Country Itself

Itself

Releasing Stress

Releasing

Stress

Productive Way

Productive

Sector

Sector

Help

Increased Stress

Stress

Way Help

Help ToTo Banking

Banking

Unproductive Way

Unproductive

Way Response

Response ToTo

Banking Sector

Sector

Help Towards

Quality

Towards Currency

Currency

Neutral Towards

Towards Currency

Currency

Quality Employment

ToTo Give

Give 10k

10k Jobs

Employment ByBy Assuring

Assuring

Jobs InIn Coming

Coming Decade

Decade

Quality Employment

Employment IsIs Not

Not

Impact Of

Impact

Of FDI

FDI InIn INDIA

INDIA

Of Impact FDI In In INDIA  Creates employment opportunity for domestic country.  Good
Of Impact FDI In In INDIA  Creates employment opportunity for domestic country.  Good

Creates employment opportunity for domestic country. Good relation between two countries. Inflow of foreign funds in Indian economy.

It creates the competition among the domestic company and MNC in this way domestic co can increase their efficiency.

Creating good capital market in India.

Government earns in the form of licenses fees, registration fees, taxes which is spend for public expenditure.

Foreign Institutional Foreign In In INDIA Institutional Investment Investment  Meaning Meaning Of Of FII FII

Foreign Institutional

Foreign

InIn INDIA

INDIA

Institutional Investment

Investment

Foreign Institutional Foreign In In INDIA Institutional Investment Investment  Meaning Meaning Of Of FII FII

Meaning

Meaning Of

Of FII

FII

Significance

Significance Of

Of FII

FII

Factors

Factors Affecting

Affecting FII

FII ToTo Come

Come InIn INDIA

INDIA

Diversification

Diversification Of

Of FII

FII InIn INDIA

INDIA

Meaning Of

Meaning

Of FII

FII

Meaning Of Meaning Of FII FII Foreign Institutional Investment (FII)  FII denotes all those investors
Meaning Of Meaning Of FII FII Foreign Institutional Investment (FII)  FII denotes all those investors

Foreign Institutional Investment (FII)

FII denotes all those investors or investment companies that are

not located within the territory of the country in which they are

investing.

“SEBI’s definition of FIIs presently includes foreign pension funds,

mutual funds, charitable/endowment/university funds etc. as well as

asset management companies and other money managers

operating on their behalf.”

Foreign Institutional Investor‘(FII) means an entity established or

incorporated outside India which proposes to make investment in

India and which is registered as a FII in accordance with the SEBI

(FII) Regulations 1995.

What are Foreign Investors looking


for?
for?

Good projects

Demand Potential

Revenue Potential

Stable Policy Environment/Political

Commitment

Optimal Risk Allocation Framework

Advantages of FII

Advantages of FII  Enhanced flows of equity capital  FIIs have a greater appetite for
Advantages of FII  Enhanced flows of equity capital  FIIs have a greater appetite for

Enhanced flows of equity capital

FIIs have a greater appetite for equity than debt in their

asset structure. It improve capital structures.

Managing uncertainty and controlling risks.

FII inflows help in financial innovation and development

of hedging instruments.

Improving capital markets.

Disadvantages of

Disadvantages

of FII

FII

Disadvantages of Disadvantages of FII FII  Problems of <a href=Inflation  Problems for small investor  Adverse impact on Exports  Hot Money " id="pdf-obj-13-12" src="pdf-obj-13-12.jpg">
Disadvantages of Disadvantages of FII FII  Problems of <a href=Inflation  Problems for small investor  Adverse impact on Exports  Hot Money " id="pdf-obj-13-14" src="pdf-obj-13-14.jpg">

Problems of Inflation

Problems for small investor

Adverse impact on Exports

Hot Money

Differentiation

Differentiation Between

Between

FDI && FII

FDI

FII

FDI

FII

  • 1. It is generally short-term investment

  • 2. Investment in financial assets

  • 3. Aim is to increase capital availability

  • 4. FII results in only capital inflows

  • 5. FII flows into the secondary market

  • 6. Entry and exist is relatively easy

  • 7. FII is eligible for capital gain

  • 8. Tends to be speculative

  • 9. No direct impact on employment of labour and wages

10.Fleeting interest in mgt.

1. 2. 3.
1.
2.
3.
Aim is to
Aim
is
to

It is long-term investment

Investment in physical assets

increase

enterprise

capacity

or

productivity or change management control

4. 5. 6. 7. 8. 9.
4.
5.
6.
7.
8.
9.

Leads to technology transfer, access to markets and management inputs

FDI flows into the primary market

Entry and exit is relatively difficult

FDI is eligible for profits of the company

Does not tend be speculative

Direct impact on employment of labour and wages

10.Abiding interest in mgt.

"If there is one place on the face of this earth where all the dreams of

"If there is one place on the face of

this earth where all the dreams of

living men have found a home

when man began the dream of

existence, it is India".

Romaine Rolland,

French philosopher