Meaning of F.D.

I
[FOREIGN DIRECT INVESTMENT]
FDI, which stands for Foreign Direct Investment is also referred to as foreign investment actually means the inflow of the total investments in any enterprise or ongoing business, which is operating for the growth of the countrys economy. The investments are the summation of long-term money or capital, equity capital, earnings, and also short-term money.

India- The Different FDI Policies The policies have been discussed below:

The FDI is allowed upto 100 percent as far as atomic energy sectors, arms and also ammunitions and mining industries are concerned. The maximum limit of 49 percent is allowed in telecom industry that is in the various GSM services.

It has also been estimated and referred that the FDI percentage cannot exceed 40 percent in the various banking services, which incorporate insurance sector and credit card operating sectors. Therefore, Foreign Direct investment has to follow the above policies to ensure that the investors abide by the rules and then go for investments in the various sectors in India.

Pros and Cons with Foreign Direct Investment in India

The biggest advantage of foreign direct investment in equity sector lies with the fact that it brings with it larger scopes of infrastructural benefits. But there is a basis disadvantage attached to it. With huge investments in equity from the foreign lands, there are chances of losing rights to the foreign companies and eventually the whole issue becomes a very cautious situation. Statistics reveal that the constant foreign direct investment inflow in the country has lead to increased liquidity and along with its subsequent strikes of inflation. Since FDI has been flowing in the Indian market with full force, there has been immense pressure on our rupees. But as you know, that there is day after night, in the same manner FDI brings with it many benefits and it ensures that there is full force of efficiency and improvisations of standards for the Indian economy as a whole.

How the FDI Trends are Improvised with newer techniques?

There have been several steps undertaken by the government to actually ensure that there is proper flow of technical education related to FDI policies to the public so that they understand and reach to the core of matter and find ways to improve the different FDI databases in India for great future prospects. Nevertheless, it has been observed that the FDI policies have enhanced the number of employment opportunities and the impetus is being received from the improved infrastructure of the organizations. As you know with large investments, it is possible to concentrate and improve the various pockets of an industrial sector. This definitely brings with it many benefits as such. Thus, foreign funds being regulated and India becoming the major concentration of foreign investors, there is a massive potential for industrial growth in the country only if the few drawbacks are properly taken care of with rightful resources and strategies.

Top 11 Countries invest in FDI of India are:

Mauritius U.K U.S.A Sweden France Switzerland Malaysia Singapore Japan Germany Netherlands

Sectors in India attracting FDI from foreign countries are:

Telecommunications that includes services of cellular mobile, radio paging, and basic telephone Chemicals Metallurgical industries Food processing industries Transportation industry Pharmaceuticals and drugs Fuels Electrical equipments that includes electronics and computer software Services sector that includes non- financial and financial Gypsum and cement products

Amount of FDI inflows from top investing countries in India are: FDI from Mauritius came to US$ 6,811.1 million between 1991 to 2002 FDI from Japan came to US$ 1,254.8 million between 1991 to 2002 FDI from U.S.A came to US$ 3,194.6 million between 1991 to 2002 FDI from Germany came to US$ 3,603.94 million between 1991 to 2002 FDI from Netherlands came to US$ 3,251.65 million between 1991 to 2002 FDI from Singapore came to US$ 1,648.22 million between 1991 to 2002 FDI from France came to US$ 1,995.79 million between 1991 to 2002 FDI from U.K came to US$ 3,768.77 million between 1991 to 2002