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Unit 7: Foreign Direct Investment
l z Film industry notes
l z Hospitals
l z Private oil refineries
l z Pollution control and management
l z Exploration and mining of minerals other than diamonds and precious stones
l z Management consultancy
l z Venture capital funds/companies
!
Caution The above is only broad categorization and may need fine tuning and updations.
For example in Civil Aviation and Broadcasting there are subcategories with different
percentage of FDI allowed.
self assessment
Fill in the blanks:
9. India’s share in the ................ scenario is interesting-outflows exceed inflows.
10. In the ................ of the 90s, India devalued the Indian Rupee twice, and made Rupee
convertible on the current account.
11. India has signed the ................ investors’ protection treaty to protect the interest of the
foreign investors.
12. For speedy approval of various ................ proposals, the Foreign Investment Promotion
Board (FIPB) has been set up.
13. ................ and ................ are the two major countries holding first and the second position in
the investor’s list of FDI in India.
14. The ................ comprise cross border acquisitions.
15. FDI is allowed under two routes, ................ and ................ .
Case Study the l&t saga continues
T he L&T, the huge engineering and construction multi-plant organisation, founded in
1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristin Toubro.
Henning Holck-Larsen and Soren Kristin Toubro, school-mates in Denmark, would not
have dreamt, as they were learning about India in history classes that they would, one
day, create history in that land. In 1938, the two friends decided to forgo the comforts of
working in Europe and started their own operation in India. All they had was a dream.
And the courage to dare. Their first office in Mumbai (Bombay) was so small that only one
of the partners could use the office at a time! Today, L&T is one of India’s biggest and best
known industrial organizations with a reputation for technological excellence, high quality
of products and services and strong customer orientation.
As on today, L&T is a 62 business conglomerate with a turnover of ` 18,363 crore
(2006–07), with the script commanding ` 2400 in the bourses. No, L&T is not sitting pretty.
Contd...
lovely Professional university 141
