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Increasing foreign investment can be used as one measure of growing economic globalization
Improved global sentiment and strong industrial output numbers in India are increasingly attracting foreign investors in the country. Other factors being attributed to the revival in foreign direct investment (FDI) in recent times include increasing consumer confidence.
India has been ranked at the third place in global foreign direct investments this year, following the economic meltdown, and will continue to remain among the top five attractive destinations for international investors during the next two years, according to United Nations The 2009 survey of the Japan Bank for International Cooperation conducted among Japanese investors continues to rank India as the second most promising country for overseas business operations, after China
India's FDI inflows touched US$ 26.5 billion in the AprilDecember period this fiscal. The country has attracted FDI worth US$ 23.82 billion in the January-October 2009 period and October 2009 alone witnessed a 56 per cent year-onyear jump in FDI with inflows of US$ 2.33 billion. The Indian retail market, which is the fifth largest retail destination globally, has been ranked the most attractive emerging market for investment in the retail sector by A T Kearney's annual Global Retail Development Index (GRDI), in 2009.
The Governments liberalisation and economic reforms programme aims at rapid and substantial economic growth, and integration with the global economy in a harmonised manner. The industrial policy reforms have reduced the industrial licensing requirements, removed restrictions on investment and expansion, and facilitated easy access to foreign technology and foreign direct investment.
All industrial undertakings are exempt from obtaining an industrial licence to manufacture, except for (i) industries reserved for the Public Sector (ii) industries retained under compulsory licensing (iii) items of manufacture reserved for the small scale sector and (iv) if the proposal attracts locational restriction.
Under the small scale policy, equity holding by other units including foreign equity in a small scale undertaking is permissible up to 24 per cent. However there is no bar on higher equity holding for foreign investment if the unit is willing to give up its small scale status. In case of foreign investment beyond 24 per cent in a small scale unit which manufactures small scale reserved item(s), an industrial license carrying a mandatory export obligation of 50 per cent would need to be obtained.
Foreign Investment Implementation Authority (FIIA) was established on 9.8.1999 to assist the foreign investors in getting necessary approvals and thereby facilitating quick translation of Foreign Direct Investment (FDI) approvals into implementation.
For conducting meeting of FIIA, the Country is divided into 4 regions as under: Region States Covered Northern Delhi,Chandigarh, Haryana, Himachal Pradesh, J&K, Madhya Pradesh, Chattisgarh, Punjab, Rajasthan and Uttar Pradesh, Uttaranchal Southern Andhra Pradesh, Karnataka, Kerala, Pondicherry and Tamil Nadu, Western Gujarat, Maharastra, Dadra & Nagar Haveli, Daman & Diu, Goa and Lakshadweep Eastern Bihar, Jharkhand, Orissa, Sikkam, West Bengal, Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, and Andaman & Nicobar Islands
Foreign Investment Implementation Authority has emerged as an effective problem-solving platform for the foreign investors. Nearly 70% of the issues received from investors in FIIA have been resolved/decided
2)What are the Norms to invest in the company for the foreigners as well as for the locals?
Foreign investors require to obtain Reserve Bank of Indias approval, FDI and Central Govt approval Other shareholders need to follow the Share Market guidelines under Bombay Stock Exchange.
3)What benefits do investors get from the company by investing into it?
4) Number of Investors in the company? 1,49,832 are the total number of shareholders as on date. This include foreign investors as well as Indian shareholders such as Insurance Companies, NRIs, Mutual Funds and Banks etc.
Good Valuations .Other than the dividends which are declared, the growth in the Company in past few years has very significantly contributed to achieving the targets. It is the Companies vision to be one of the top 4 iron ore mining companies in the world, the first major milestone to become a 50 Mt organisation by 2011
Eg increase in the production and exports/Sales during past couple of years from 10 million tons to 15 million tons and at present to 21 million tons and commitments of the company to focus & achieve the target of 50 million tons seems not far away; thus leading this company to reach into the top brass Companies in the World, is luring the investors into SESA which is now a part of Vedanta Group, based in UK.
As the company is too huge and has very good goodwill and it is productive and seeing the gains which this company can give, foreign investors have invested into it.For any corporate company you should find it.Productivity - profits gains
Who would have thought that the tiny west coast Indian state of Goa, known for its sunny beaches and laid-back lifestyle, would become the top FDI earner in the country? People worldwide know Goa as a tourists paradise blessed by silvery and pristine beaches, historical temples and churches and a place of peace-loving people who cherish communal harmony. Very few would, however, fancy that Goa is today turning into a fast developing economy. The state has been ranked among the leading states on the developmental scale by national magazines. Goas economy is growing at a faster rate than that of the country as a whole. The Goan economy traditionally hinged on mining, Gulf remunerations and now on service sector mainly tourism.
strategic location of Goa and the availability land at good locations has attracted real estate developers. In recent years, Goa has also attracted huge investment for holiday homes by non-resident Goans (NRGs), NRIs and domestic buyers. According to The Times of India, real estate prices had boomeranged by 30 percent in 2004, and had been steadily increasing. Land value in Panaji doubled in the last one year while other places across the state have seen a steady 20 percent increase. Nearly one in every four buyers in Goa were second home seekers looking for a good investment option
NRIs and persons of Indian origin have particularly evinced interest in buying property here and constitute 15 per cent of the demand
After doing the project on FDI we come to a conclusion that the FDI plays a very important role in the development of the economy. Now the government has understood the value of foreign direct investments and they are doing constant efforts to bring the foreign investors to the states. Most of the States are making serious efforts for simplifying the rules and procedures for setting up and operating the industrial units.
Moreover, with a view to attract foreign investors in their states, many of them are offering incentive packages in the form of various tax concessions, capital and interest subsidies, reduced power tariff, etc.
If more foreign investors tend to invest then the industrial sector will be benefited and will help to grow.
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