Investment, in financial terms, refers to the money put on or invested in business to get returns after sometimes which is yield after covering all the expenses and crossing the break even. Investment is the life blood of business to set up, grow and expand in greater scale.
Foreign Direct Investment or FDI refers to the investment which is invested to a country from another country (s) termed as inbound FDI and the investment which is invested to another country (s) known as outbound FDI. Any country in the world invests in another country (s) in different forms such as Joint Venture, Agency, Franchisement, outsourcing models etc. But FDI is the investment to another country without using these investment models which could be in equity basis or in interest gaining base.
Its absolutely significant for any nation for development of different infrastructures, trade businesses, production sectors and service oriented businesses.
Lets look at the example of the United States of America which was the top leader to bring in inbound FDI till 2012 AD for the development of different businesses to lead the world in economic race. In 2012 AD, China excelled the USA to bring in the FDI and presented the amazing economic growth supplying the Chinese goods all over the globe. In 2015 AD, India has surpassed China in this case to be the top nation and has steadily increased the economic growth with the slogan 'Make in India'.
Therefore FDI is of utmost importance tool for development of a nation especially for developing nations like Nepal.
The countries (generally the developed countries) supplying the FDIs gain benefit of the interests and equity in investing their frozen capital or the capital raising very low interest rates. And the countries (generally the developing countries) receiving the FDIs benefit over the low interest capital for business development. Along with the capital both the countries enjoy the technical expertise and local knowledge used in such ventures to and from.
The FDIs flowing to the developing countries from the developed countries are cheap due to their low interest rates in the banks.
No. Absolutely not. Bad news travels faster or some unsuccessful stories subside the successful ones. As mentioned earlier bringing in FDIs has been done and dusted in our neighbouring countries resulting to emerge themselves as the economic power houses in the world using the same instrument.
However processing for the FDIs is not a joke which can be prepared and forwarded through financial experts using their experience and expertise without fail. The unsuccessful stories might be in the part of less technical people.
In summary, professional processing and feasible business plans bear fruit or in another sense to get FDI is possible.
SSIPL has technical expertise in preparing the sure-shot/feasible business plans, expertise and experience in necessary procedures and broad networks with connections to materialize your business concept bringing the FDIs.
Trade Tower Nepal, Thapathali, Kathmandu, Nepal
Phone No: +977-1-2238876
Email: firstname.lastname@example.org or email@example.com