“Role of Fdi & Fii in Indian Economic Growth” Essay

Words: 10228
Pages: 41

A

PROJECT REPORT ON

“Role of FDI & FII in Indian Economic Growth”

SUBMITTED TOWARDS PARTIAL FULFILLMENT

OF

POST GRADUADTE DIPLOMA IN MANGEMENT

(Approved by AICTE, Govt. of India)

(Equivalent to MBA)

ACADEMIC SESSION

2008 – 2010

[pic]

Under the guidance of : Submitted By:

Dr. Tapan Kumar Nayak Gagan (61)

Associate professor Karun Dev (73)

IMS Ghaziabad Kush Dixit (77)
…show more content…
Actually, hundreds of MNCs have de-listed from the stock market in the last decade by converting to unlisted subsidiaries of foreign parents. An analysis of this alone will give a clue to the nature of the capital market due to foreign investment in our economy. MNC does not even bring funding from outside sources since it can access funds in the domestic market by showing "comfort letters" from its parent company. There are many local financial institutions, both Government and private, which would lend them below prime rate since they are "global". Financial institutions in India do not deny foreigners funds.

The another argument is regarding technology transfer. In this age of information flows and market for technology any entrepreneur can purchase technology needed by him. In a country like India, which scores very high for "technology diffusion" or "absorption", building on technology is not an issue. If we travel in the rural areas of Punjab, we find washing machines being used for churning lassi on a mass scale. Who ever thought that washing machines have alternative uses? The Indian Diaspora can be relied upon to acquire most modern technology in complex areas, and there are already significant organic links between the NRIs and the domestic capitalists.

The next argument is regarding the growing global flow of funds and how nation-states cannot ignore it. Fascinatingly, when Mr Lakshmi Mittal attempted to take over Arcelor, or when China Petroleum