Foreign Direct Investment (FDI) in E-commerce in India

Introduction The Internet is an important element in busy lives and busy lives. "The Internet" is a central hub for communication, exploration, contact with people, or for public purposes. As a result, the growth of the Internet has led to several new developments, such as the consumer increasingly purchasing items and relying on the internet to demand the most favorable price, the profit margin of the company has declined. E-commerce is an industry or service that you purchase and sell through electronic systems such as the Internet and other computer networks.

India has gathered foreign direct investment (FDI) as the world's third largest economic power in terms of purchasing power parity. In 2011, foreign direct investment in India reached 36.5 billion dollars, a 51.1% increase from 24.15 billion dollars in 2010. India has advantages in telecommunications, information technology, and other important areas such as automotive parts, chemicals, clothing, pharmaceuticals, jewelry. Despite the rapid increase in foreign investment, strict direct investment policy remains a big obstacle. Over time, India adopted a series of foreign direct investment reforms. India has abundant skilled management and technical expertise. The population of the middle class is 300 million, and it is a growing consumer market.

Foreign direct investment (FDI) arises when a company invests directly in a new facility to produce and / or sell a product in a foreign country. The U.S. Department of Commerce stated that foreign citizens, organizations, or related groups would receive direct foreign investment as long as they receive more than 10% interest on foreign entities. Once foreign direct investment is confirmed, it will be a multinational corporation. 87. (p.242) What are the two forms of direct investment? These two forms of overseas direct investment are mergers and acquisitions of green field investment, the establishment of new business overseas, and the international expansion of the company through existing companies. The acquisition is either minority shareholders, majority equity, or 100% ownership. 88 (p. 242) discuss the trend of foreign direct investment over the past 30 years. In the case of foreign direct investment, it is necessary to distinguish between foreign direct investment stocks and flows.

Foreign direct investment> Foreign direct investment> FDI flow and stock> FDI stocks: Foreign direct investment is defined as an investment of a resident enterprise in a certain economy aimed at obtaining long-term benefits of residents of other economies It is. Permanent profit means that there is a long-term relationship between direct investors and companies, which means that direct investors have a tremendous influence on the management of direct investment enterprises. At least 10% of the voting rights (representing the investor's impact) is the basic criteria used. Therefore, management of foreign investors is not necessary. Interim shares are direct investments held by nonresidents in the reporting economy and external shares are investments in foreign reporting economies. Inventory charts also show inventory distribution by a wide range of industries such as manufacturing industry and service.