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Report on Foreign Direct Investment in India

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Added on  2020-05-08

Report on Foreign Direct Investment in India

   Added on 2020-05-08

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Running head: INTERNATIONAL BUSINESS ACROSS BORDERSInternational Business across bordersName of the UniversityName of the StudentAuthors Note
Report on Foreign Direct Investment in India_1
1INTERNATIONAL BUSINESS ACROSS BORDERSTable of ContentsIntroduction:...............................................................................................................................2Discussion:.................................................................................................................................2General overview of country:.....................................................................................................2Political, Economic, Socio-cultural and Technological influences:..........................................3National resource and factor endowments that create competitive advantage:.........................6Foreign currency and exchange influences:...............................................................................6The countries existing trade policies, systems, barriers and incentives:....................................7Existing levels of Foreign Direct Investment:...........................................................................8Summary and recommendation:..............................................................................................10References list:.........................................................................................................................11
Report on Foreign Direct Investment in India_2
2INTERNATIONAL BUSINESS ACROSS BORDERSIntroduction:The report is about analyzing the potential of foreign direct investment in selectedcountry that is India. Discussion incorporates general overview of country and existencetechnological, political, social and economic advantages that would help in facilitating FDIopportunities. Furthermore, foreign exchange, trade policies, incentives, barriers and systemsalong with factor endowments creating competitive advantages have also been explained.Competitive advantages of India in relation to natural resources and factor endowment thosefacilities foreign investments have been discussed. Existing trade policies accompanied withbarriers to foreign investment have been discussed in later part of report.Discussion:General overview of country:India has the world largest democracy and one of the growing economic globalizationin the country is foreign direct investment. Country has been liberalizing its policies forattracting foreign investments. Compared to other form of international capital inflow, FDIhas gained importance in India. Some of the factors that have attracted FDI are availability ofquality and cheap human resources, stable economic policies and opportunities for exploringunexplored markets. In recent years, there has been a modest gain in flow of foreign directinvestment in India. It is recognized by most investors that size of Indian market has apromising prospects of growth. India faces many issues in terms of poverty, heath problems,global competition, technology obsolescence, research and development, education andemployment. Foreign capital inflow is favoured in light of acquisition of better technology,acquisition of labour at cheaper cost, upgraded technology and generation of employment(Vinayagathasan 2013).
Report on Foreign Direct Investment in India_3
3INTERNATIONAL BUSINESS ACROSS BORDERSPolitical, Economic, Socio-cultural and Technological influences:GDP and Industrial growth:(Source: Anand et al. 2014)India has become one of the fastest growing G-20 economies and since year 2014,there has been recovery in economic growth with annual growth rate hovering around 7.5%.Declining current account deficit and inflation has accompanied robust economic growth.Lower pressure on inflation and current account deficit is attributed to the factor such asdeclining prices of commodities (Chan 2016). For some years, downward trend has beenwitnessed in investment to GDP ratio. However, the corporate investment has been dampedby corporations’ weak financial position and low capacity utilizationExport growth:
Report on Foreign Direct Investment in India_4

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