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FDI Advantages and Disadvantages

GOI (government of India) regulate the rule and regulation regarding the FDI in real estate sector as well as retail sector after a detail study of pros and cons in FDI. The advantage of FDI is that equity participation of foreign brings larger and stronger infrastructural base along with high level technology but the disadvantage is that the ownership rights will be lost to a foreign investor.

The disadvantage about the FDI includes the raise of inflationary conditions caused by the excess floe of FDI towards India. In order to discourage flow of FDI towards India, GOI has devalued rupee. However FDI involves the benefits such as efficient management and improvement of the quality and standard of the product.

Certain regulations on FDI stocks as per FDI policy 2007 may discourage FDI confidence by shutting the doors of industrial relation ships with foreign investors. FDI and GDP are working together leading to an economic development in India. for more details visit www.propertykhazana.com or contact 9535000925