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 Forums Index>> Trade Policy Initiatives>> Impact of Foreign Direct Investment
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Author
Karki Brother -sandip1

Mr. Sandip Chhettri
Karki Brother
New Delhi, India
Free Member
Joined :07/01/2004
No of Topics Posted : 25
Reply/Comments : 19
TOPIC : Impact of Foreign Direct Investment

Attracting foreign direct investment (FDI) has become a key part of national development strategies for many countries. They see such investments as bolstering domestic capital, productivity, and employment, all of which are crucial to jump-starting economic growth. While many highlight FDI’s positive effects, others blame FDI for "crowding out" domestic investment and lowering certain regulatory standards. The effects of FDI can sometimes barely be perceived, while other times they can be absolutely transformative. While FDI’s impact depends on many conditions, well-developed and implemented policies can help maximize its gains.


Author
Posted on 09 June 2007 at 16:03:00 [Message #26 ]
Money Management Consultants Ltd-rituparnak

Mr. Divya Aggarwal
Senior Copy Editor
Money Management Consultants Ltd
New Delhi, India
Free Member
Joined :05/11/2007
No of Topics Posted : 113
Reply/Comments : 18
Re: Impact of Foreign Direct Investment

I would like to add India's FDI story too. India, today is ranked among the most favoured destinations for Foreign Direct Investment (FDI), with the services sector at the top in attracting FDI in April-November 2006. India has also emerged as the most attractive FDI destination in Asia with an 18 percent rate of return on equity investments.

However, experts are still divided on the problems and prospects of FDI in retail. Some say it will shrink employment opportunities, completely alter the retail distributional structure and deal a death blow to the corner shop structure. The optimists, on the other hand, see a whole range of opportunities — from improved collection, processing and better distribution of farm products to generation of more opportunities for the rural and urban unemployed.


 

 

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