Use the United National Confer

I have taken India as my choice and below are the details offoreign direct investment, India has the richest human resourcecountry. Population is more than 130+ crores people and current GDPis $2259642 Million and capital per income growth is 4.94% and GDPgrowth of 7.11%.

FDI takes vital part in the development of both developing anddeveloped countries. FDI has been associated with improved economicgrowth and development in the host countries which has led to theemergence of global competition to attract FDI. FDI offers numberof benefits like overture of new technology, innovative products,and extension of new markets, opportunities of employment andintroduction of new skills etc., which reflect in the growth ofincome of any nation. Foreign direct investment is one of themeasures of growing economic globalization. I

Investment has always been an issue for the developing economiessuch as India. The world has been globalizing and all the countriesare liberalizing their policies for welcoming investment fromcountries which are abundant in capital resources. The countrieswhich are developed are focusing on new markets where there isavailability of abundant labors, scope for products, and highprofits are achieved. Therefore Foreign Direct Investment (FDI) hasbecome a battle ground in the emerging markets.

Foreign investment plays a significant role in development ofany economy as like India. Many countries provide many incentivesfor attracting the foreign direct investment (FDI). Need of FDIdepends on saving and investment rate in any country. ForeignDirect investment acts as a bridge to fulfill the gap betweeninvestment and saving. In the process of economic developmentforeign capital helps to cover the domestic saving constraint andprovide access to the superior technology that promote efficiencyand productivity of the existing production capacity and generatenew production opportunity.

India’s recorded GDP growth throughout the last decade haslifted millions out of poverty & made the country a favoureddestination for foreign direct investment. A recent UNCTAD surveyprojected India as the second most important FDI destination afterChina for transnational corporations during 2010-2015. Services,telecommunication, construction activities, computer software &hardware and automobile are major sectors which attracted higherinflows of FDI in India. Countries like Mauritius, Singapore, US& UK were among the leading sources of FDI in India. FDI inflowroutes:

An Indian company may receive Foreign Direct Investment underthe two routes as given under:

1. Automatic Route: FDI in sectors /activities to the extentpermitted under the automatic route does not require any priorapproval either of the Government or the Reserve Bank of India.

2. Government Route: FDI in activities not covered under theautomatic route requires prior approval of the Government which areconsidered by the Foreign Investment Promotion Board (FIPB),Department of Economic Affairs, and Ministry of Finance.

FDI is not permitted in the following industrial sectors:

· Arms and ammunition.

· Atomic Energy,

· Railway Transport.

· Coal and lignite.

· Mining of iron, manganese, chrome, gypsum, sulphur, gold,diamonds, copper, zinc.

· Lottery Business

· Gambling and Betting

· Business of Chit Fund

· Agricultural (excluding Floriculture, Horticulture,Development of seeds, Animal Husbandry, Pisciculture andcultivation of vegetables, mushrooms, etc. under controlledconditions and services related to agro and fllied sectors) andPlantations activities (other than Tea Plantations) .

· Housing and Real Estate business

· Trading in Transferable Development Rights (TDRs)

· Manufacture of cigars, cheroots, cigarillos and cigarettes, oftobacco or of tobacco substitutes.

An analysis of the recent trends in FDI flows at the globallevel as well as across regions/countries suggests that India hasgenerally attracted higher FDI flows in line with its robustdomestic economic performance and gradual liberalization of the FDIpolicy as part of the cautious capital account liberalizationprocess. Even during the recent global crisis, FDI inflows to Indiadid not show as much moderation as was the case at the global levelas well as in other EMEs. However, when the global FDI flows toEMEs recovered during 2010-11, FDI flows to India remained sluggishdespite relatively better domestic economic performance ahead ofglobal recovery. This has raised questions especially in thebackdrop of the widening of the current account deficit beyond thesustainable level of about 3 per cen.

it is pertinent to highlight the number of measures announced bythe Government of India on April 1, 2011 to further liberalize theFDI policy to promote FDI inflows to India. These measures, interalia included (i) allowing issuance of equity shares againstnon-cash transactions such as import of capital goods under theapproval route, (ii) removal of the condition of prior approval incase of existing joint ventures/technical collaborations in the„same field?, (iii) providing the flexibility to companies toprescribe a conversion formula subject to FEMA/SEBI guidelinesinstead of specifying the price of convertible instruments upfront,(iv) simplifying the procedures for classification of companiesinto two categories – „companies owned or controlled by foreigninvestors? and „companies owned and controlled by Indian residents?and (v) allowing FDI in the development and production of seeds andplanting material without the stipulation of „under controlledconditions?. These measures are expected to boost India’s image asa preferred investment destination and attract FDI inflows to Indiain the near future.