JAIIB | INDIAN ECONOMY (IE) AND INDIAN FINANCE SYSTEM (IFS) | CASE STUDY ON FOREIGN INVESTMENT

Foreign investment has become a keystone of India’s economic growth and financial development. For JAIIB (Junior Associate of Indian Institute of Bankers) applicants, considering how foreign investment shapes the Indian economy (IE) and the Indian financial system (IFS) is essential for grasping its implications on trade, industry, and financial markets. Learning Sessions represents this article on the case study on the role of Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) in driving economic growth, infrastructure development, financial inclusion, and market reforms in India.

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Foreign investment in India primarily takes two forms:

-Foreign Direct Investment (FDI): FDI refers to investment made by a foreign entity directly into the business or assets of a domestic company. This type of investment is often long-term, involving the establishment of new business operations, acquisitions, or joint ventures. 

-Foreign Portfolio Investment (FPI): FPI refers to investment in a country’s financial assets, such as stocks and bonds, by foreign investors. Unlike FDI, FPI is typically a short-term investment and can be easily withdrawn.

For the extensive preparation of candidates, get details through our YouTube videos for JAIIB IE & IFS Module wise Syllabus with explanations and tips to help candidates in their preparation journey.

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Role of Foreign Investment in the Indian Economy (IE):

• Boosting Economic Growth
• Infrastructure Development 
• Employment Generation and Skill Development
• Technology Transfer and Innovation 
• Industrial Growth and Export Expansion

Role of Foreign Investment in the Indian Financial System (IFS):

• Development of Capital Markets
• Financial Inclusion and Access to Capital
• Improvement in Banking and Financial Services
• Foreign Exchange Stability and Reserve Accumulation
• Regulatory Reforms and Market Liberalization

To summarize, Foreign investment has played an influential role in shaping both the Indian economy (IE) and the Indian financial system (IFS). JAIIB candidates, comprehending the dynamics of foreign investment is necessary for appreciating how global capital flows influence domestic industries, banking, and financial systems. Learning Sessions provides additional information about JAIIB IE & IFS FAIR GLOBALIZATION AND DEGLOBALIZATION  by giving examples of real life scenarios.

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