Effect of economic recession on FDI in India

This ongoing economic recession means bad business for all sectors, When there is no liquidity how the fdi will emerge.

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Hi all,

Herewith i would like to share upon my views regarding the topic "The Effect of economic recession on FDI in India" The first and foremost information i would like to share is that there is a common misperception amongst all that our nation India is under recession due to the global recession.Infact,that is a pure misperception.Since recession was first started in the US country in real estate industry and then in banking sector.Which eventually lead other countries end up in the recession effect.The fact is that our nation is the larger exporter of IT,which made an effect amongst IT industry.So this was mis perceived as we are under recession.Our nation is safer than any other nation across the globe.I would call it as either meltdown or slowdown which in turn is good for economy like India.The term i used meltdown or slowdown is not my own perception.This is how the famous economists around the globe termed the turmoil.I would strongly say that there is no recession exist in our nation in any industry.Even on FDI it was just a meltdown or slowdown,not a recession.

Cheers!

Hemnaath

FDI is effected by short term variations in markets,ay some point in past it has shown its effect but market gradually picked up......

FDI r good for india...but we can remain dependent on them but again our deficit doesnot allow us to take ne other steps...

Well FDI in India have suffered due to recession. In India we have actually not faced the recession but it was a slowdown in economy. Now conditions have improved but still i see that there will be less FDI in comparison to it should be in India if recession was not there. FDI in real estate sector, IT Sector, B.P.O Sector, in these sector we can expect good FDI in near future. But i also think we must be aware and alert in F.D.Is because if Indian government became too much soft towards F.D.Is so it can also have a negative impact on our economy if recession in future again hit the world economies.

In respect of FDI- FDI or Federal Direct Investment, is the investment by foreign nationals in a country’s industries. In case of weakening of US$, there will be lesser funds in terms of rupees, invested by the US citizens and thus the FDI from US as such will be effected adversely. However with the US industries in turmoil, India will become a very attractive destination for all investment, within the US and without. Therefore the impact of a weak US dollar on FDI as such will be suitably compensated by the increase in FDI from other sources.imports by a substantial amount. As such, in a purely economic sense, exports to the US are much more essential for the economy and for the livelihood of all involved. Thus it can be said that the loss which Indian economy will face through the loss in exports will far out-weight the gain for the importers.

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Originally Posted by trillionaire

The FDI flow will not be hampered on the other hand the government has to liberalise the flow of FDI into the economy on certain sectors which is in need of foreign management and funds. Some sectors like retail I think requires more FDI inflow to accelerate the economic groth of the country

yes you are correct in this regard.letting the FDI inflow will solve the problem

The recession in the US market and the global meltdown termed as Global recession have engulfed complete world ecomony with a varying degree of recessional impact. World over the impact has diversified and its impact can be observed from the very fact of falling Stock market, recession in jobs availiability and companies following downsizaing in the existing available staff and cutting down of the perks and salary corrections. Globally the financial sector sacking the existing base of employees in high numbers in US the major example being CITI Group same still followed by others in hospitality industry Jet and Kingfisher Airlines too. The cut in salary for the pilots being 90 % can any one imagine such a huge cut in salary.