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REASONS FOR FOREIGN INVESTMENT IN INDIA

Political stability & strong policy to protect investors Safety & security of life, money & output Investment protection through legal provisions Continuous infrastructure development A banking system with up to date technology A highly productive labor & smooth working conditions Clear & simple tax procedures

Availability of raw materials & other componentsThe demand for the products that investorsmanufactures

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FOREIGN DIRECT INVESTMENT

Foreign Direct Investment (FDI) means a company or anyother entity in one country making a physical investment in othercountry.

FDI includes investments made to acquire a lasting interest inenterprises that are operating outside the economy & nationalborders of an investor.

FDI (for a country) represents foreign assets in domesticStructures, equipments & organizations.

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BENEFTS OF FDI

INFLOW OF CAPITAL IN HOME COUNTRY

REPATRIATION OF PROFITS BY INVESTOR

TECHNOLOGY DEVELOPMENT & TRANSFER

TRANSFER OF KNOWLEDGE

ACCESS TO NEW MARKETS

FDI LED EXPORT GROWTH

EMPLOYMENT GENERATION

INFRASTRUCTURE DEVELOPMENT IN HOMECOUNTRY

LEADS TO LIBERALIZATION & GLOBALIZATION

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SECTORS ATTRACTING HIGHEST FDI INFLOWS

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FDI IN

INFRASTRUCTURE SECTOR

Inflow of FDI in the infrastructure sector has brought abouta host of changes in the industry, including an end to

large number of government regulations of innovative

schemes of financing infrastructure projects.

India is now the third most favoured destination for FDI,

behind China and USA.

A proactive approach is even been seen on behalf of the

government. Allowing 100% FDI in infrastructure sector

is just one of the reformed policy changes that we have

been witness to.

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REASONS TO ATTRACT FDI ININFRASTRUCTURE

Indias infrastructure is alive and well and is adequate tothe previously slow growing economy. Governmentalone is not capable to finance, let alone building it andsuccessfully running it.

FDI as source of cash and foreign technical know howwith their participation IS must for the growth ofinfrastructure in India.

Overall investment plan for this sector is being drawn up

by the governments planning body. It includesparticipation of central & state governments togetherwith the private sector. . The latter is expected to fundand manage about 20% of the overall investment and

projects so more of FDI can be attracted towards theprivate sector.

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India has recognized that without proper infrastructurethere is no possibility of making rapid strides on the economic

front so there a need to attract FDI in this sector.

Another critical issue is that of making people pay for usinginfrastructure services. BOT based road development is onesuch example. This is the biggest challenge as far as theviability of projects is concerned, as in this case, publicattitude has to be changed. In order to make efficient uses ofcritical utilities like electricity and water supplies, these needto be priced as per the cost of providing these services and

not as per political compulsions (provision of free electricity isan example). This can prove to be the biggest attraction forFDI participation.

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Conclusion For Infrastructure

As can be seen from the recent initiatives of IndiaInc and government, we surely are moving in

the direction of emerging as an economic powerin Asia. However, while there might be speedbreakers in the way, a world class infrastructureset up can take care of the same. In India, we

surely are living in one of the most excitingtimes ever. Time is changing! In fact, there is noother option. Time has to change and so isIndia. infrastructure in India.

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ConclusionStrengthen the public care system in amending certain regulationWhile there are clearly concerns about the equity, affordability and

market segmentation, implications of growing foreign investors

presence in Indias hospital segment, it is evident that the root cause

lies in structural problems that are already present in the health care

sectors, such as lack of affordable health insurance schemes or

inappropriate regulations on medical education providers. foreign

investment and greater corporate presence in hospital could

aggravate such structural problems systems. The inside obtained

from the discussions with stake holders suggest that the solution liesinthat affect all players and in introducing schemes, which provide

affordable access to health care for all and not in restricting foreign

investment, the benefits of foreign investment in hospitals are likely

to out weigh these adverse affects.