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In this PPt are the five advantages of Foreign Direct Investment in India.If you need to consult about FDI, visit https://bit.ly/2PWblBd
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1. EMPLOYMENT • The disguised unemployment in the secondary sector is the major crisis Indian skilled or unskilled labour is facing, foreign investments prove themselves. • FDI has boosted job- creation and increased job options leads to increased income which ultimately leads to an increase in the expansion of the Indian Economy.
2. HUMAN CAPITAL • Human Capital refers to the talents and brainpower in the form of the human resource of a country. • India is fortunate enough to have a great human resource in the way of its youth. Lack of education, skill development and job opportunities mar such resources. • FDI in India bridges the gap between social capital and better job options.
3. STABLE EXCHANGE RATE • The foreign exchange in India has improved drastically with the inflow of Foreign Investments. Hence, the central bank of India maintains a stock of several international exchanges in bulk. • This stabilises the exchange rate thereby building a stable foreign monetary policy.
4. ADVANCEMENT OF BUSINESS AND TECHNOLOGY • The state, businesses or firms receiving FDI in India are given access to a vast horizon of open markets and trade in any part of the world. • These foreign companies provide all the modernised tools and technologies along with modern financial techniques for the all-round profit of the business.
5. ECONOMIC GROWTH • Apart from generating jobs and better financial conditions, foreign investment is also a significant source of revenue collection in India. • Whenever a company launches a new tie-up or opens a new hub in the Indian Market, a large portion of its profit is deducted as a revenue. Hence, the external capital inflow is increased, and the Indian Economy grows.
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