Authored By: Ajit
Panicker
Foreign Direct Investment is an investment which is made in a country by company or a group from some other country either by buying out the company from the target country completely or by buying a percentage of it or by expanding its operations into the target country in the line of existing business.
Foreign Direct Investment or FDI, is done in either of the ways:
Foreign Direct Investment is an investment which is made in a country by company or a group from some other country either by buying out the company from the target country completely or by buying a percentage of it or by expanding its operations into the target country in the line of existing business.
Foreign Direct Investment or FDI, is done in either of the ways:
·
By incorporating a
wholly owned subsidiary or company
·
by buying out shares
of the company
·
by mergers or
acquisitions
·
through an equity
joint venture
According
to the Ernst & Young (E&Y)'s 2012 India Attractiveness Survey,
investors view India as an attractive investment destination. India stands as
the fourth most attractive destination for FDI in the survey's global ranking.
Domestic market's high potential driven by an emerging middle class, cost
competitiveness and access to a highly qualified workforce are the major
factors that has been the magnet force to attract global investors.
But
of late, in past few months due to delayed political and economic decisions by
the Indian government, there has been an outflow of the foreign
investment and together with other factors the investment picture is
looking bleak as of now. It is just a passing phase , wherein a number of
external, global and internal factors have impacted the country, but there
would soon be a turnaround and in next 2 years , the growth story would be
right back on the track.
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