Investment Valuation in India

Foreign Direct Investment (FDI) has been one of the factors that has driven the India growth story. Foreign Direct Investment refers to the investment of multinationals who invest in the equities (generally 10% or more)of other companies that are established in other countries. The investing company benefits from the growth and expansion of other countries while the country that has received the investment is benefitted by the large inflow of foreign equity that is used for the country's development. FDI generally entails long term investment with participation in the management, technology transfer and expertise. The net flow (inflow - outflow) of foreign exchange calculated as sum of equity capital, reinvestment of earnings, long-term capital, and short-term capital is shown in the Balance of payments. India has allowed FDI in various sectors through automatic route and has fixed ceilings for FDI. Investment beyond the ceiling through automatic route requires Government appr