What Is Advantages And Disadvantages Of India

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This internationally competitive industry and sustainable growing economy of India shows the bright future of FDI in India. India is estimated to require around US $ 1 trillion during the 12th Five-Year Plan period (2012–17), to fund infrastructure in sectors such as roads, airports and ports. The government is in the process of liberalizing FDI norms in construction activities and railways, which could attract more investments to meet the target.
The government is also relaxing FDI norms in other sectors for foreign investors to invest. FDI in multi-brand retail has been allowed up to 51 per cent. The minimum requirement for the FDI is US$ 100 million, of which at least 50 per cent must be invested in 'backend infrastructure' within three
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It helps in developing the know-how process in India in terms of enhancing the technological advancement in India.
 Linkages and spillovers to domestic firms- Various foreign firms are now coming in the Indian market through Joint Ventures and collaboration. The maximum amount of the profits gained by the foreign firms through these joint ventures is spent on the Indian market.

FDI has been a growing factor that has strengthened the economy of India, but on the other hand it is also being blamed for ousting domestic inflows. FDI is also claimed to have lowered few regulatory standards in terms of investment patterns:

The disadvantages of foreign direct investment occur mostly in case of matters related to operation, distribution of the profits made on the investment and the personnel. There is a chance that the Domestic companies may lose their ownership to overseas company
(a) Other disadvantage of FDI is that it affects the small enterprises or industries because mostly they are not able to compete with world class large company and ultimately out of the main
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There is skilled manpower and substantial availability of funds. At the same time, there are some untapped resources. The resources are well available in both the rural as well as the urban areas. US$ 150 billion is required for the increase infrastructure 10 years down the line. So proper utilization of available resources is the basic requirement to overcome challenges facing by FDI.

• Equity challenge: India is definitely developing in a much faster pace now than before but in spite of that it can be easily identified that developments is not equal in every ware. To get the complete growth, it is important to make sure that the both the rural area and urban area have the same amount of development.

• Political Challenge: The political support is necessary to increasing FDI capital in various sectors. So, there has to be coordination between the Government and the different foreign countries investing in India.

• Federal Challenge: Speeding up the implementation of policies, rules, and regulations is a very important to increase the
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