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prelims Test Series 2019
सेमिनार: अंग्रेज़ी सीखने का अवसर (23 सितंबर: दोपहर 3 बजे)
India became a top Investment Destinations
Jan 30, 2014

The liberal foreign investment policies of India have made her the top three investment destinations globally by all international bodies including World Bank, UNCTAD. This is also mirrored in the foreign investment data. Between 1999- 2004, India received US$ 19.52 billion of foreign investment which increased to US$ 114.55 billion between 2004-09, and increased further to US$ 172.82 billion between 2009- September 2013.

India’s Foreign Direct Investment policy has been progressively liberalised to make the investment regime more investor friendly. Recently, the government has amended the sectoral caps and/or entry routes in some sectors viz. petroleum & natural gas; commodity exchanges; power exchanges; stock exchanges, depositories and clearing corporations; asset reconstruction companies; credit information companies; tea sector including tea plantations; single brand product retail trading; test marketing; telecom services; courier services and defence. This has been done to boost investor confidence related to economic scenario of India.

FDI inflows have a positive impact by supplementing domestic capital, technology and skills of existing companies including in the aviation sector, as well as through establishment of new companies. It has indirect multiplier effect on other related sectors also, and thereby stimulates economic growth. FDI inflows also have a positive impact on the current account balance.

Further, on FDI in retail it said that consumers gains from organised retail on multiple counts. Farmers too have benefited significantly from the option of direct sales to organised retailers. The profit realisation for farmers selling directly to organised retailers is about 60 per cent higher than that received from selling in the mandi.

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