India 's Foreign Corporate Tax Rate

India has emerged as a trading superpower and as an increasing magnet for FDI.  Its role in the international economy to this point has been less remarked than the rise and dominance of China but increasingly India will be appreciated for the opportunities it is creating for its citizens, employers and foreign and domestic firms.

two countries will be evaluated and also with the help of thorough literature review the advantages and disadvantages of FDI in India and China will be expressed. 2. Research Question The main research questions of this study are:  What are the advantages and disadvantages of FDI in China?  What are the advantages and disadvantages of FDI in India? The entire research work has been done for the successful answering of the above mentioned research question. 3. Methodology Methodology is always the most

With an advent of the New Economic Policy (NEP) reforms, Chand (n.d) states that FERA (Foreign Exchange Regulation Act, 1973 was abandoned and FEMA (Foreign Exchange Regulation Act) was enacted. Due to this there were huge number of Multinational Companies (MNC’s) entering the Indian market. Industries of high technology and high investment priority were provided automatic permission of Foreign Direct Investment (FDI) up to 51% of

Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company. Foreign direct investments are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies. The key feature of foreign direct investment is that it is an investment made that establishes either effective control of, or at least substantial influence over, the decision making of a foreign business.

First of all, the investment flow into the host country does not produce an immediate effect but accrues benefits over a period of time and the level of the positive effect may vary from country to country. The conditions that FDI faces in the developing countries may slow down the process. The issue is that in order to make use of all benefits, which were discussed earlier, the host country has to have a certain level of education, technology, sufficient openness to trade and appropriate policy regulations. The restrictive policy or insufficient precondition state of economy of the host country will not bring the expected advantages. Moreover, the developing states having a low development level may experience certain disadvantage of the foreign direct

“Let’s talk about Investment from one country into another normally by companies rather than governments that involve establishing operations or acquiring tangible assets, including stakes in other businesses. Foreign direct investment is well-known from group of foreign investment by the factor of control. FDI is a transfer of ownership; it usually involves the transfer of factors matching to capital, including management, technology and organizational skills. (D. A. MacDougall G. 1960.). Businesses that make foreign direct investments are often called multinational corporations may make a direct investment by creating a new foreign enterprise, or by the acquisition of a foreign firm. In the framework of foreign direct investment, advantages and disadvantages are one way or another kind of perspective. A Foreign

In 2009, China attracted $95 billion FDI inflows, accounting for 1.9 percent of its GDP compared with India’s $36.6 billion inflows, equivalent to 2.7 percent of its gross domestic product. China attracted 2.5 % more FDI’s than India in the year 2009.India’s FDI inflow dropped by 14 percent in 2009 and that of China by 12 percent. India should improve its infrastructure as well credibility of the government to attract FDI’s. India is a vast country with many natural resources including metals, minerals and oil deposits. English speaking ability gives edge over China to improve its service sector. India should sustainably increase it’s invest on infrastructure to attract more FDI’s. Foreign investors, who could invest their money anywhere, find more opportunities and less obstacles in China. (Zhou Siyu, 2010)

A business will always look for new ways to profit – its success is dependent on how well it can attract growth and keep the profits flowing. One of the modern ways of increasing profits is conducted through foreign direct investment (FDI). What is about and how can it provide profits to businesses? Here’s a look at the modern phenomena and the advantages businesses can enjoy from engagement.

FDI has been a growing factor that has strengthened the economy of India, but on the other hand it is also being blamed for ousting domestic inflows. FDI is also claimed to have lowered few regulatory standards in terms of investment patterns:

FDI plays in the economic growth process of the host country. A good number of the studies and discussions show that there exists a strong correlation between FDI and economic progression. In addition to being an engine for diffusion of knowledge and transfer of technology, FDI also stimulates international trade, domestic investment, expands host nation 's domestic savings, and increases the host country 's foreign exchange reserves adjusting its Balance of Payment post. These factors increase the economic growth of the host nation.

FDI in Services In 2000, share of FDI in services to total FDI inflows in India was just 1.8% and afterwards it grew steadily to reach a record all-time high of 34.7% during 2006 but declined afterwards. Of the cumulative FDI in services during 2000-2010, financial services accounted for bulk of the inflows (41.7%) followed by banking services (9.6%), and both non-financial services and R&D sharing 9.5% each (Table 1). Share of financial services,

In developing countries FDI is seen as a useful source of funds. LDC’s look upon FDI as a source to bridge their demand supply gap of funds. It represents an important source of non-debt inflow that often brings along with it new technology and management

Foreign Direct Investment is the investment of a country domestic assets into foreign structures, equipment and organizations, but does not include investment into stock markets. Foreign direct investment reflects the objective of obtaining a lasting interest by a resident entity in one economy (direct investor) in an entity resident in an economy other than that of the investor (direct investment enterprise). The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence on the management of the enterprise. Direct investment involves both the initial transaction between the two entities and all subsequent capital transactions between them and among affiliated enterprises, both incorporated and unincorporated.

Foreign direct investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner. More specifically, foreign direct investment is a cross-border corporate governance mechanism through which a company obtains productive assets in another country .Its definition can be extended to include investments made to acquire lasting interest in enterprises operating outside of the economy of the investor.

Organization of the author(s): Mechi Multiple Campus, Bhadrapur, Jhapa, Nepal; Post Graduate Campus, Biratnagar, Nepal