Category: Economics »

Importance of outward FDI to the Indian economy

Trade liberalization in India post 1991 has transformed the scenario of capital influx in the country and has triggered the growth of secondary and tertiary sectors significantly. The growth dynamics of Indian economy especially the service sector propelled forward. Due to increased revenues, outward Foreign Direct Investment (FDI) (i.e. FDI outflow) of India has also been significant (Someshu., 2010). Given the fact that FDI inflow and its impact in India is a major area of discussion and interest, similarly outward FDI can be also contemplated as an important subject of discussion. Outward FDI is a mechanism through which a domestic firm expands its operations to other countries. Outward FDI in India mainly occurred after the year 2003. During the economic crisis in the year 2008-09. Due to which the outward FDI flow increased significantly. The following graph depicts the trend of the flow during the past 15 years. Read more »

Reforms in policies and regulations of FDI in India

Foreign Direct Investment (FDI) has been one of the most critical factors in the economic health of emerging markets like India. It is the process of establishment of business or carrying out business activities in the host country by a foreign country. The Government of India had undertaken major reforms in the country’s FDI policies in 1991. The most recent policies allowed for increasing the FDI limit. Read more »

Impact of FDI on the employment sector of India

Foreign Direct Investment (FDI) can be contemplated as one of the most decisive catalysts of generating employment in India. Opening up of trade barriers in India post trade liberalization in the year 1991 has witnessed the influx of FDI at a great extent. Read more »

Rules governing non-banking financial companies (NBFC) in India’s real estate sector

Traditionally, India has had a bank dominated financial sector. Even so, there have always been Non-Banking Financial Companies (NBFC) to provide finance to mainly unorganized markets. NBFC have continued to complement banks in providing infrastructure finance. When it comes to providing medium-term capital, they enjoy more flexibility than banks, which gives them a competitive edge over banks. Read more »

Impact of demonetization on India’s real estate sector

A sudden ban on the existing Rs. 500 and Rs. 1000 currency notes shook the Indian economy and real estate sector which was evident after the third quarter of the financial year 2016-17. The announcement of demonetization and implementation of the Benami Properties Act for unregulated properties took place in the same year. Economists predicted the growth rate of the real estate sector to slow down more than ever as a result. Read more »

Challenges faced by the Indian real estate sector

Indian Real estate sectorThe Indian real estate sector has come a long way since the 1990s’ by becoming one of the fastest growing markets in the world. It is not only successfully attracting domestic real estate investment but foreign investments too. The growth of the industry is attributed mainly to India’s growing population, rising income level and rapid urbanization. However, despite the positive outlook for the sector in the coming years, it is battling challenges. Read more »

Impact of macroeconomic factors on the growth of the real estate sector in India

Macroeconomic factors influence a country’s economic outcome on national and regional level. Gross domestic product (GDP), employment rate, inflation rate, interest rate, Foreign Direct Investment (FDI), stock performance, government policies, and production cost are the major economic factors which affect economic growth. In India, the construction business in the real estate sector is the second largest in terms of employment generation. Read more »

India’s real estate growth since liberalisation

Liberalisation can be defined as the reduction of legal restriction and economic liberalisation can be defined as privatisation.  It is associated with transferring the ownership from public sector to private sector (Sally, 2007). In the year 1991, India faced a severe crisis of foreign exchange reserves which were at an all-time low. In the aftermath of the events, many sectors received a boost due to sudden increase in FDI (foreign direct investment) inflow. Read more »

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