SOURCE OF GLOBAL

FINANCE IN INDIA

SUBMITTED BY
ANURADHA GUPTA
PGDM
BLS INSTITUTE OF MANAGEMENT GZB
 The various Forms of Foreign Capital Flowing into
India has helped to bring in huge amounts of FDI into
the country, which in its turn has given a major boost
to the Indian economy.

 market potentials in India

 Fifth largest economy in the world ranking above the
France, U.K, Russia, Italy
 Third largest GDP in the entire continent in Asia
 Second largest among emerging nation
 Large untapped market with respect to the huge
population
Reason to invest In India
 Change in industrial policy like removal of
license except certain sectors
 Foreign investment policy and
automatic approval route
 Foreign investment promotional board to provide
the assistance to the foreign investor
 Single window clearance for investor it develop
secretarial for industrial assistance
 And many more like SEZ FEMA etc
Historical Background
 Before liberalization- closed economy for all
over the world having the protectionist
perspective
 After 1990- the deregulation and
liberalization of the Indian economy and also
increased the flow of foreign direct investment
into the country
 Turn into open economy for all over the world
Meaning of capital

source of capital in India

•Foreign source
•Domestic source
•Long term source
•Debt capital
•Equity capital
Source of Foreign capital

Foreign capital

Official Private source

Bia-leteral & multi Portfolio

Tied and untied aid FDI
Leteral aids investment
Other source of finance
 Euro issue
 FCCB
 Equity share
 ADR & GDR
 FDI inflow on India
Official source
 Bilateral and multi-literal aid
 When two country involve one is loan granter and
other is receiver
 When many countries come together and make a
pool of amount to assist any country
 Example- world bank, Asian development bank,
IMF etc
 Untied aid and tied aid
 Free aid that country avail with out any condition
and vise versa
FDI in India
 GDR
Global Depository Receipt means any instrument in the form of a
depository receipt or certificate created by the overseas depository
bank outside India and issued to non- resident investors against
the issue of ordinary shares or Foreign Currency Convertible
Bonds of issuing company
ADR
 ownership in the shares of a non-U.S.
company and trades in U.S. financial markets
 ADR is issued by a U.S. depositary bank and
can represent a fraction of a share, a single
share, or multiple shares of the foreign stock
 ADRs are denominated in U.S. dollars, with the
underlying security held by a U.S. financial
institution overseas. .
Foreign Currency Convertible Bond - FCCB

 A type of convertible bond issued in a

currency different than the issuer's domestic
currency
 The money being raised by the issuing
company is in the form of a foreign currency
 ALSO called Euro issue
Sources of data collection
 www.investopedia.com
 www.rbi.gov
 www.economywatch.com
 www.google.com

Thanks