# FDI

Foreign direct investment (FDI) is a direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country In Year 2012 FDI was a cynosure of all the eyeballs as the government allowed FDI upto 51% in multi brand retail, 49% in the aviation sector, 74% in the broadcasting and media sector in lieu of ongoing liberalization. While everyone was skeptical about the actual benefits from FDI , our government held a strong grip upon the fact that the measures would create job opportunities and improve the finances of the nation by continuous flow of foreign capital in the Indian markets across the sectors. FDI showed some signs of relief to the common man who was crippled by the rising inflation but lead to horrendous state among small businessmen fearing the loss of business on 51% FDI being allowed to Multi Brand Retail outlets .

100% FDI is permitted for setting up of special Economic Zone.FDI could compliment the local development by boosting export competitiveness, employment generation and strengthening skills and enhanced financial resources for development.
The confidence shown by the investors in our economy . FDI could be among  important sources of financing for Indian Economy. Consistency  and transparency is to be adapted by Policy Makers along with comprehensive long term development strategy  Investors would receive additional benefits. Their risk is reduced because they can diversify their holdings outside of a specific country, industry or political system. Diversification increases return without increasing risk.

Better standards of living could be achieved by recipient countries by higher tax revenue from the company that received the foreign direct investment. Businesses could be benefited by the well practiced management, accounting or legal guidance  by their lenders. They can also incorporate the latest technology, innovations in operational practices, and new financing tools that they might not otherwise be aware of. Lifestyles of employees could be enhanced helping to create a better standard of living for the recipient country