FDI Destination- India

Document Sample
FDI Destination- India Powered By Docstoc
					Over the years, foreign direct investment (FDI) in India has become an inseparable
and important aspect of the non-resident Indians (NRI). NRI investment in India has
registered a surge with the initiation of globalisation and liberalisation. According to a
survey World Investment Prospects Survey 2010-2012 conducted by United Nations
Conference on Trade and Development (UNCTAD), India is the second most
important FDI destination for transnational corporations during 2010-2012.
India is ranked as the 4th most attractive FDI destination in 2010, according to Ernst
and Young's 2010 European Attractiveness Survey.
NRI investment in India has been increasing by leaps and bounds with NRI venturing
into different proposals of business in India. There is a requirement for strategic
investment guidance in order to ensure smooth flow of NRI investment in India. The
business in India gets impetus with better investment guidance, one such site is that of
OIFC, wherein one can ask the expert. While the official website of the government
give details of the amount of FDI in India about the particular sector or business in
India. The government has also cleared 12 proposals for FDI in India worth over
US$ 496.84 million. The major inflows are expected to be accounted for by KKR
Mauritius Cement Investments and Shriram City Union Finance.
Moreover, the Consumer Affairs Ministry has approved to allow 49 per cent FDI in
India in multi-brand retail segment. According to an ICRIER study, commissioned by
the Commerce Ministry in 2007, “the retail business, in India, is estimated to grow at
13 per cent each year. Additionally, the project, Manjeera Trinity, is being part funded
through FDI India, made by Trinity Capital in to the project.
Significantly, the NRI investment in India is focusing on the real estate, infrastructure
and education business in India, besides other segments. The business in India
receiving the maximum FDI equity inflow into India is the services sector comprising
financial and non-financial services while construction activities and housing and real
estate as the second and third highest sector attracting FDI India during the financial
year 2009-10. The business in India is witnessing new heights especially on the back
of the robust growth in the manufacturing sector and good monsoon. The FDI
investment in India is also witnessing a boom in the automobile industry, with India
being stated as the seventh largest automobile producing country.
Additionally, the need to focus on the sustainable development and the concept of
green power is another important business in India receiving FDI. There has been a
significant increase in the interest shown and joint ventures (JV) being formed by
foreign companies to harness the non-conventional resources of India, thus attracting
FDI India. Investment guidance for doing business in India can also be subject to
trend analysis of the NRI investments. The FDI investment is considered one of the
indicators to track which business is showing a robust growth.