Investment

FORIEGN DIRECT INVESTMENT In the last two decades cosmea has seen an huge inflow of FDI or external direct spend into underdeveloped countries. More and much developing countries atomic lean 18 competing with each another(prenominal) to draw this investment. Restrictions which were earlier in rump on these investments are now creation removed as the importance of FDI is being realized. FDI has a major role to take on in Indias economic development. The total FDI inflow in our estate was US$27 billion in 2010-11. everywhere the past a few(prenominal) years, many sectors get to seen the growth of foreign investment. The Government is too coming out with new reforms to set ashore up more and more of this investment.  What is FDI? It refers to an investment made by a foreign various(prenominal) or a company in the nut-bearing capableness of another country. It hobo be considered as the straw man of bully across national frontiers in a demeanor that a llows the investor to have a control over the investment. Firms that provide FDI are referred to as MNCs. The investors can invest in existing industries/ argument or can promote new industries. There can be two types of FDI- inward and outward. The cumulative of two, results in cabbage FDI inflow. FDI is freely allowed in all the sectors except a few sectors, though in certain sectors FDI is not allowed beyond a ceiling.

why is FDI needed? FDI plays a major role in developing countries like India. They act as a enormous term source of hood as well as a source of advanced and developed technologies. The investors also bring along best global practices of management. As large amount of money of capital comes in through these i! nvestments more and more industries are gear up up. This helps in increasing employment. FDI also helps in promoting international trade. This investment is a non-debt, non-volatile investment and returns received on these are broadly spent on the host country itself thus circumstances in the development of the country. Some of the sectors that attract high FDI inflows in India...If you want to get a rich essay, order it on our website: OrderEssay.net

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