The last few years have witnessed many activities on the foreign direct investment front with world's leading telecom operators picking up large stakes in domestic operators. The trend in this sectors first declines till and increases in due to strong RBI policy and increase in consultancy services and devaluation of rupees against dollar.
It is possible that this Japanese government assistance may crowd out some private sector Japanese investment. And in sectors which have a cap on investments, matters are even more complicated.
Incentives to foreign investors include free repatriation of revenue from the sale of shares and exemption from tax on dividends and capital gains. The rapid development of the telecommunication sector was due to the FDI inflows in form of international players entering the market and transfer of advanced technologies.
Hence, there is a need to determine the push and pull factors behind any change in the FII, so that we can frame our policies to influence the variables which drive-in foreign investment.
A large number of foreign institutional investors FIIs who trade on the Indian stock markets operate from Mauritius. Singapore: Singapore has become a rapidly growing source of investment funds to India in the past few years. Institutional investors on the other hand are specialized financial intermediaries managing savings collectively on behalf of investors, especially small investors, towards specific objectives in terms of risk, returns, and maturity of claims.
How- ever, there was an uneven pattern between regions and also between sub regions. Email: shobhaedward gmail. Thus the sector wise inflows of FDI in India shows a varying trend but acts as a catalyst for growth, quality maintenance and development of Indian Industries to a greater and larger extend.
Further, the increased FDI Inflows to Metallurgical Industries in India has led to the development, expansion, and growth of the industries. FDI inflows to real estate sector in India have developed the sector.