Foreign Direct Investment

Foreign Direct Investment

1. Creates, direct, stable and long lasting links between economies

2. Driving force of globalisation

3. Significant FDI inflows between world regions

   • Inward flow of FDI to India derived from large no. and variety of countries

4. Inward FDI in India mainly response to encouragement by gov

   • Treaties between India and Mauritius and Singapore enable companies within these countries to avoid high taxation
   • FDI norms (rules, constrictions) regarding inward investment relaxed in sectors including.....
     • Retail
     • Airline and railway infrastructure companies