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Topic FDI.
Plug into the Global Economy

FDI recognised as a Growth Driver

Large scale economic reforms

India A Good Place to Put Your Money

Fourth largest Economy (PPP) - A safe place to do business Largest democracy political stability & consensus on reforms

Largest reservoir of skilled manpower

Liberal & transparent investment policies

Long-term sustainable Competitive advantage - High growth rate economy

Second Largest Emerging Market

Attracting long-term foreign capital to supplement domestic investment efforts, particularly in infrastructure and export competitive sectors

Creating skilled employment Opportunities and Import of world Class managerial practices

FDI
Developing attractive Configurations of locational advantages at global level Promoting technology and other linkages to enhance domestic industry competitiveness

Global FDI trends 2013

Record FDI flows of US$ 1.35 trillion in 2012

Developed world still favourite (over 75% of global share)

52% of global FDI flow in developing countries India has retained its position as the worlds third most attractive destination for investment

WHAT WE ARE REALLY LOOKING AT IS A SIGNIFICANT SHARE OF WHAT COMES TO ASIA

INVESTMENT OPPORTUNITIES

INFRASTRUCTURE
INVESTMENT REQUIREMENT: US $ 2.5 TRILLION

SECTOR

PRESENT CAPACITY

CAPACITY ADDITION BY 2014

INVESTMENT BY 2013 (US $ Bn)

POWER
TELECOM

225 GW
960 M LINES

300 GW
1.15 Bn LINES

135
80

PORTS
ROADS

423 MILL. TONNES

4236000 KM

512 MILL. TONNES

100000KM

20
1.7 TRILLION

ADVANTAGES OF FDI
Increase in Domestic Employment/Drop in unemployment
Investment in Needed Infrastructure.

Increase in tax inflow

Positive Influence on the Balance of Payments. New Technology and Know How Transfer. Increased Capital Investment. Targeted Regional and Sectoral Development.

KEY SECTORS
TELECOM MULTI BRAND RETAIL AIRLINES DRUGS AND PHARMA INSURANCE PRINT MEDIA BOADCASTING

NEED FOR FOREIGN CAPITAL

Domestic Capital is inadequate for purpose of economic growth. It is essential as a temporary measure Bring productive factors