Investment Opportunities in India

May 16, 2013

Business Incubation in India

Indian market today is reshaping the world’s economy. India’s gross domestic product (GDP) has crossed the trillion dollar mark in 2007 and is currently in 4th position (PPP) after US, China and Japan. Investment in almost every sector (Education, Food, Energy, Health Care and Retail) of the Indian economy has a promise of high returns that has caught the attention of investors and businesses across the world.

India offers a stable, prosperous foundation to grow one’s business. It offers rich business opportunities and markets to non-resident Indians (NRIs) for new products and services. It is one of the fastest, easiest and lucrative investment destinations in the world to set up business. India is the second-most profitable destination, according to UNCTAD’s World Investment Prospects Survey 2010-2012.

Business Incubation in India

Business incubation is a dynamic process of business development. Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Successful completion of a business incubation program increases the likelihood that a start-up company will stay in business for the long term.

Incubators usually also offer companies rental space with flexible leases, shared basic office services and access to equipment all under one roof.

Overseas Indians who wish to enter a business incubation program must apply for admission. Acceptance criteria vary from program to program, but in general only those with feasible business ideas and a workable business plan are admitted.

Startup Incubation Centers in India

Startup Incubation holds significant importance in a country like India where entrepreneurs by the score are launching new setups and changing the game of business by minutes. For the uninitiated, business incubation programs or centers provide support functions, mentorship and resources to individual entrepreneurs or entrepreneurial setups. This enables them to get all the expert advice and technical guidance that they need to survive for a longer time, unlike most other entrepreneurial ventures that fizzle out within a few months of their launch.

Almost every other prestigious B-school today houses an incubation center so that business opportunities can be nurtured from their very source. Currently there are about 100 incubation centers supported by the Indian STEP and Business Incubator Association (ISBA) which is the apex Indian professional body supporting business incubators. Private incubators are a handful, but gradually growing. These numbers are expected to double within the next two years. Some of the good business incubation centers in India:

  • Centre for Innovation, Incubation and Entrepreneurship (CIIE), IIM Ahmedabad
  • AngelPrime
  • Indian Angel Network (IAN)
  • Technopark Technology Business Incubator (T-TBI)

Long term projects are projects of national importance that will help in India’s development. These platform showcase investment opportunities in projects that require funding and will also help you to contact relevant institutions undertaking the projects. This information will be updated regularly to generate fresh investment opportunities for the overseas Indians.

January 28, 2013

India as an Investor-Friendly Country

The attractiveness of the Indian market is regularly substantiated through the investments made by various multinational corporations in the country, which demonstrate their belief in the strong fundamentals of the Indian economy. The Government of India policies backed with positive business environment, availability of talented workforce and stable outlook for the macro-economy has made India a global hub for international players to park their funds in various investment sectors.

There is a parallel process of business and industry with various countries taking note of the opportunities that recent economic developments in India have created for them.

Projections

As per the Government projections, Indian infrastructure landscape would attract investments worth Rs 49,000 billion (US$ 881.29 billion) during the 12th Five Year Plan period (2012-17), with at least 50 per cent funding from the private sector.

Sectors

For overseas Indians, India offers a tremendous opportunity for investment and wealth building as India is slated to grow at the rate of 8%-10% for the next few decades. There are various investment sectors where non-residents of Indians (NRIs) can explore money-spinning deals and do profitable business.

Investment Options

Most of the Indians who have migrated to foreign countries for professional and personal reasons, still feel the desire to be associated with their mother land in some way or the other. They try to make investments in India through different avenues. There are numerous investment options for NRIs in India that can yield them lucrative benefits and profitability both in short run as well as long run. A few of them are as follows:

  • For the NRI who is looking for high returns, attention should be concentrated on the huge number of central and state sponsored projects in key infrastructural sectors like education, healthcare and construction
  • In general NRI investment is made through three major sectors. These include bank accounts, investment in immovable properties and investment in securities and debts
  • There are many types of bank accounts. The regulations vary according to the repatriation of the interest income
  • The securities in which the NRI can invest through the automatic route include agriculture, mining, alcohol brewing, power, industrial explosives, hazardous chemicals, drugs and pharmaceuticals, transport, insurance, industrial parks, non banking financial institutions etc. You do not need the approval of the Reserve Bank of India (RBI) to invest in these securities. In some cases, the approval of the Foreign Investment Promotion Board (FIPB) may be required. These include sectors like tea, infrastructural companies except telecom, publication of newspaper and periodicals, courier service and single brand product retailing
  • If you are looking for investment opportunities with repatriation benefits, you will have to invest in mutual funds, term deposits and bonds for at least three years
  • A NRI can invest in proprietary and partnership firms in India, but the income will not be repatriated outside the country
  • NRI can directly invest in real estate in India except if you are buying agricultural lands or plantations. Investments in housing schemes and commercial properties are free

June 19, 2012

Investment Scenario in Indian Power Sector

Indian power industry has a long way to go. India’s fast-paced economic growth and its rapid rate of industrialisation and urbanisation have fuelled an increased demand for energy.

India has made remarkable progress in the power sector during the eleventh plan. The sector ranked sixth among the leading sectors of the Indian economy and has attracted US$ 4.6 billion in foreign direct investment since 2000. There are three major pillars of the sector – generation, transmission, and distribution. Generation is further divided into central sector (Public Sector Undertakings), state sector, and private sector, which constitutes total installed capacity of 31.21 per cent, 47.49 per cent and 21.17 per cent respectively.

Investment in Power Sector

With the population increasing at a rapid pace and a wide gap between demand and supply, the Indian energy sector offers strong opportunity to industry participants. After China and the US, India has been ranked as the third best investment destination in renewable energy sector.

The power sector in India requires an investment of up to US$ 400 billion in a span of five years to end on March 2017, according to P. Uma Shankar, Secretary, Ministry of Power, India.

The organised trading business in energy sector is set to be opened up for NRI invest in India. This attracts foreign funds to invest in the Indian power industry. 26 per cent FDI will be allowed at par with the level of commodity exchanges in the sector.

Investment Opportunities and Future Prospects

If India continues to grow at the current rate, the Indian economy would emerge as the second largest in the world, next only to China, by the year 2050. It is therefore expected that, the demand for energy would also rise substantially in the future.

US companies investing in India’s green energy market will have good prospects and it will be a win-win situation for both the countries.

The generation capacity of the country stands at over 180 MW (as in August, 2011) with a dominant share of the state sector. The private sector, which currently contributes around 22 per cent of the generation capacity, is expected to increase its share to 52 per cent by 2017.

Government Initiatives

Indian Government has proposed various proposals in the budget 2012 to stimulate investments in power sector in India, which provides a massive opportunity to the American companies.

In order to attract NRI invest in India, FDI up to 100 per cent is permitted under automatic route for projects of electricity generation (except atomic energy), transmission, distribution and power trading.

The Government of India is working on the plan to generate 470 gigawatts (GW) of nuclear energy by 2050, announced in 2009. Thus, it opens the door for huge opportunities in the sector.

The Government has planned to set up four solar thermal power projects through the solar energy corporation of India.

Being one of the fastest growing economies and the second largest populated country, India represents an attractive investment destination for the power industry.

May 22, 2012

India becoming NRI’s Favorite Investment Destination

India is the fourth preferred destination for FDI just after the United States, China and Britain. Government offers several facilities to Non Resident Indians (NRIs) to attract foreign investment in India.

NRIs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, NRIs can acquire shares/debentures of Indian companies with the help of stock exchanges in India.

The growth of nation comprises of various amendments of acts and policies, investment favorable taxation and other documentation process for starting a company, availability of human resources, etc. All these factors attract NRIs investment in India. The two most attractive features of the Indian market are high potential of the domestic market driven by an emerging middle class and cost competitiveness.

Investment Options

The RBI allows Non Resident Indians to hold accounts in Indian banks as business investors in India. There are different types of saving and deposit investment schemes based on the type of account. Joint holding is also allowed in these accounts subject to certain limitations. This can be a good investment option for NRIs who have parents or blood relatives in India.

RBI has also granted general permission for NRIs investment in India, who are willing to invest money in shares of growing companies in India. They have an option to invest in mutual funds, fixed deposits, shares and debentures of companies, etc. The limit of investment, type of company and few other factors are subject to regulations of RBI and SEBI.

The NRIs are also allowed to invest in Government securities and National Savings Certificate. They can also convert their money into property (except the agricultural land), so that it remains as a security on long term basis while the value of the investment grows with time.

Benefits for NRI Investors:

  • Taxation policy in India has been changed to favor NRIs to invest in India
  • Various provisions have been made to benefit NRIs
  • Loans are provided to NRI against deposit schemes to construct homes in India
  • With advancement in technology, mode of transaction has leaped a step ahead through demat accounts, internet banking facility etc.

Major Points for Investment:

  • NRIs can directly invest in the Indian companies equity market using their own demat account or broker account.
  • They can deal with only one bank at a time.
  • NRIs can trade only in delivery-based transactions. Intraday trading (buy and sell on the same day) is not allowed for them.
  • They will be allowed to invest only up to 5 % of the paid up capital of the company.
  • NRIs need to have 100% funds at the time of buying. No exposure is given to NRIs.
  • They need to have 100% stock available to them while selling. No short selling allowed.

It is very important to choose the best broker for NRIs investments in India. So that, all the NRI services that are to be availed are of high quality.

April 13, 2012

The Opportunities and Outcomes of NRI Investments in India

While analyzing the structure of NRIs investment in India, first you must know in depth about FDI or foreign direct investment. Soon, you may have your organization or company in India and you might be expecting an international intervention which can surely help your company grow with years. In this case you would be appositely provided with expertise, funds and foreign money so that you can well channelize you efforts and move one step nearer towards an empirical set up. There has been much scope for FDI in India and the genre is intensifying with time. Foreign investors too are trying to make the best use of Indian intellect to make more out of the money that they are investing.

Though the scope is huge but India’s attitude in matters of foreign direct investment has not been so encouraging. You can witness hundred percent FDI influence only in case of individual retailing. Most Indian entrepreneurs are of the opinion that an FDI plan is quite ruining for Indian economy and that they would in no way be apt for a domestic economic plan. Supremacy of multi-branded retailers would mean an end to small retailers and manufacturers. They are of the opinion that a strict entry for multi branded retailers would mean loss of employment for a major section of the population. This is no way encouraging for NRIs investment in India.

However, the encouraging part about the FDI in India is that there is a section of the population who believe that if a country allows the FDI concept it would be economically beneficial for the country itself. In the process, the foreign fiscal intervention would surely allow you to have a high standard of living and the country would really stand stalwart with prefect infrastructural facilities. The greatest positive implication of FDI is that it allows a quick flow of cash. Following the way you can earn more amount of money in the least amount of time.

After all FDI in India is not a threat. There is a section of the population who feel that with apposite FDI intervention the farmers would get more money for the products which they are selling directly to the retailers. Most of the time, the mediators keep a huge part of the money for themselves, and they make the farmers suffer in the process. FDI brings the end of the sufferings and once India starts outsourcing and becomes an FDI figure itself things would really seem to improve.

There are several reasons why people would want to invest in India. Cheap resource and a strong operational unit have always kept India at the front seat in matters of ushering more foreign investments. Thus, foreign companies have always opened up in India and they are making huge amount of money through an effective production process. These foreign companies are always in look out for making the most of all the better opportunities that come on the way.

When speaking about NRIs investment in India, you must know that there are two types of FDIs. One is the inward FDI and the other one is the outward FDI. When you are investing money after a second country it is outward FDI and when you are accepting investments from a third party it can be better denoted as inward FDI.

However, while having a synopsis you can say that investments both directly and indirectly can be beneficial if you are following the rules correctly.

April 9, 2012

Judging Business Investment Opportunities is Important

There are innumerable business investment opportunities meant for you. You have to grab the right one for yourself. In business you can literally invest after anything. However, a blind investment can really make you suffer in the long run. Make sure that you know in details after what you are investing. You can invest in an existing company or you can also invest in a fresh business opportunity. It absolutely depends on your requirements. However, it is always safe to invest in something which is already there. There would be minimum risk of failure. Investing after a fresh concept is hazardous. To do this you have to go through a solid research work. A perfect find out will always help you invest in the best possible way.

Are you trying to go for something more dynamic and global? Then make plans for business investments after international entrepreneurs. For this you can take the best help from internet. There are dedicated websites for the purpose and they mainly aim at matching the business enterprises with all potential investors. On net business investment is quite risky. In most cases you are dealing with an unseen company. In no way you can trace the company if you lose cash in the process. In recent years to avoid such uncanny situations most investors are checking with the international status of a company before investing a sum in the venture.

There can be local business investment opportunities as well. To do this you can start looking for the Chamber of Commerce in your particular area. Being a member of this organization you can invest in business more confidently. The chamber of commerce is a place where business men of all, status and potential come to meet each other. Business is greatly discussed in such places and the current economy is judged at a bigger rate. Here you would also find businessmen helping each other in times of need. Chambers can lend you money to buy equipment and enhance your business status.

Researching is a very important part of business investment opportunities. There are several possibilities of investment and this is the time for you to know about them in details. Never skip your research stage. Putting in money without proper knowing is a crime. You can even borrow money from several fiscal organizations when you plan to invest in business. However, such economic bodies would be really interested to know the nature and extent of your business. This is because they would be interested in judging the possibilities of your business to find out whether you would be able to return the loan in time.

There can be good business investment opportunities and there can be those safer ones as well. However, in risky business affairs the returns are quite promising. Once you win the opportunity you would get huge in return. But, the tag of risk is always there. On the other hand in less risky business affairs the amount of gain is sure to be less. The lesser is the risk the less would be the gain. Here a self-judgment is highly required before you make the ultimate investment.

March 14, 2012

Investing in India is a Good Way Out

India is a land with far reaching hopes in the field of foreign investment. You give one and you get plenty in return. The soil of India is yielding. For any external speculation you have lots to gain from this eastern zone of the world. Investing in India is a good work and you would surely have the golden days in future for this. For proper inflows in India there have been several releases in the genre of simplified compendium based on FDI or Foreign Direct Investment. These, several FDI processes along with other associated investing terms opportunities are growing to make this ground the best field for utilization and investment.

Things are so promising in this part of the world that any source of foreign investment in India can locate the nodal bodies and best invest for more profitable gains in life. It is also important for you to know that the Reserve Bank of India has been unleashing some of the sections in the sector of FEMA or Foreign Exchange Management Act allowing people living outside the periphery make lucrative investments in India. These are open routes for the investors so that they can put in that extra to have a more than expected gain in business.

Recently, in matters of investing in India, the government is trying to take away all the liberties which the NRIs have been enjoying till now in sections like real estate, aviation and the others. There is so much for the investors to put in in the multi-faceted retail production, agriculture, retailing and other wings in international business. At the time of ongoing discussions the government makes all attempts to frame out concrete policies in the genre. This is just like an encouragement enticing all potential investors to rush with their several investment proposals for a perfect interpersonal business relationship down the years.

FDI has promised to introduce revolutionary alterations to make things more promising for all potential Indian consumers. Recently, there has been a partial unleashing of the retail sector with a 51 percent of foreign direct investment in matters of single brand retailing. Thus, big names like Versace, Marks & Spencer, Nike, Adidas and others are fast coming up with their stores in several parts of India.

When investing in India the foreign names no more have to concentrate in trying to set up things. They are surely planning to make things happen in the bigger way. They are trying best to strengthen their holds in the field of communication and network retailing. They even have much to give in form of discounts and offer keeping pace with the Indian mode of linking things. Thus, when you are getting bigger brands in the same number of coins, you would have more reasons to make untimely purchases.

February 28, 2012

Go for the Best Investment Opportunities Suitable for you

Currently, with the increasing need to save more, there are plenty of investment opportunities available for the interested investors. In fact, it is true that there had been opportunities of investment since a long time, but currently, these opportunities have been enhanced and the options have also been made easy for common people. Therefore, if you are looking ahead to any form of investment, irrespective of the nature, you can select your option and go it. However, prior to the selection of these options, it is very essential that you know the details associated with these forms of investments, and accordingly, you can start with the deal. Now with the availability of opportunities of foreign investment in India, things have further become easy and smooth for people.

There are plenty of companies that offer investment opportunities. However, prior to any form of investment, the most important thing that you would have to determine is the amount of money that you want to invest in a particular place. At the same time, another important thing that you would have to consider is the time period for which you want to continue your investment. However, in any case, you can be assured that the amount of money that you ultimately gain at the end of the day from your investment would largely depend on the condition of the market.

Therefore, knowing the condition of the market also becomes crucial. Based on the level of fall and rise in the prices, the amount that you gain would depend. Thus, another important thing that you must consider is the condition of the market at the time of your investment. There might be plenty of investment opportunities, but all the options for investment might not be equal. The rates might largely vary on the conditions of the existing market. Therefore, you should not only consider these factors, but at the same time, if possible, you should also consult with an expert in this case. You would definitely get the right solution.

In the recent days, the popularity of foreign investment in India has increased to a tremendous extent. In fact, this form of investment largely proves to be beneficial not only for the national economy, but also for the global economy, as a whole. In fact, statistical reports have given evidence to the fact that this form of investment can benefit not only the investor, but also the country to a great extent. In today’s date, economists also consider it wise to invest in foreign direct investment, instead of any local businesses, because the rate of profits in this case is more.

Apart from that, through foreign investment in India, the investor can also know the ups and downs of the company and can have some controls over the company in which he has invested his money. Accordingly, the stocks and shares of the company also remain under control. Therefore, if you invest in any foreign company, you would definitely get more returns. To know more about it, you can take the help of professional experts because they would offer you guidance, and at the same time would also ease the investment process.

Investments by the Indians in Overseas can also be Profitable

Are you an Indian residing overseas? Well, you are not an exception, because there are plenty of Indians in overseas today. If you want to enhance the level of your investment, there is again nothing to be worried because since ages, these people have invested in different places. In the recent days, the opportunities that are available for Indians like you have been increased because there are larger numbers of Indians that reside in the overseas today. Irrespective of the place to which you belong, you can check out the availability of different options in which you can invest. At the same time, based on the amount that you invest, the gains that you can expect to get might also vary.

With the economy getting globalized, there have been important ties along different levels. India has also been lucky enough to carry out business and other international ties with many other nations of the world. Therefore, being one of the Indians in overseas, if you want, you can not only make an investment in the country you are residing, but at the same time, you would also be able to carry out investment in India. There are many Indians who irrespective of residing overseas have set up their individual business. It has been seen that setting up businesses can be one of the most profitable means of making investment. Thus, if you want, you can also go for it.

Now that you want to make an investment in India, by setting up a company, you can set up the operations either as a foreign company or as an Indian company. There are of course several factors that are considered in this context through which you can make way for a good form of investment. However, prior to that, you must ensure that you are well aware of all the rules and regulations that can help you to make your investment in the most flexible and smooth procedure.

In the recent days, it has been seen that investment in India gives plenty of returns not only to an Indian investor within the country, but also to someone abroad. Moreover, there are so many companies operating here that can offer you investment opportunities, you would be spoil for choices. However, in any case, before finalizing your deal, one of the most important things that you need to remember in this context is that follow the procedures carefully, so that once invested, you have to repent for any kind of losses. If necessary, you can talk to the professional experts, so that they can offer you appropriate guidance regarding the steps that you should take in this context.

In some cases, being one of the Indians in overseas, when you are wondering about the best forms of investment, one of the best things that you can do is to make a prediction about the future returns. Though it is true that your predictions might change in the future based on the condition of the economy, but you never know your prediction might make you invest in a good place from where you can make a good return.

January 19, 2012

Indian Healthcare Industry – Taking Giant Strides in Healthcare

It has been clearly predicted that the Indian healthcare industry is going to transform into a chief sector that will boost the economic growth and contribute to economic progress of the country, along with the IT and Education industries. The healthcare industry in India is poised to reach about US$70 billion by 2012. The rapid growth is paced at 12% per year in the last four years and is expected to become an industry of US$ 280 billion by the year 2020. This is mainly due to the rise in income levels, elderly population, growing population, medical tourism, government initiative and lifestyle diseases in the country. Some of the chief players, who have made a big contribution to this boom, include Apollo Hospitals Enterprises, Max Hospitals, Fortis Healthcare Ltd and Aravind Eye Hospitals.

The pharmaceutical industry in India is known comprises of 8% of the world’s pharmaceutical manufacture. The pharmaceutical market is estimated to grow up to US$ 55 billion by the year 2020. Since the last two years, Indian pharmaceutical companies have been aiming at multinationals, to pool resources as well as for acquisition. India is poised to join the league of the 10 top global pharmaceutical markets, in sales by 2020. India is also the topmost exporter of generic medicine, worth around US$ 11 billion. Some of the top pharmaceutical industries in India include Ranbaxy Laboratories Ltd, Cipla Ltd, Cadila Healthcare Ltd, Lupin Ltd, Sun Pharmaceutical Industries Ltd, Wockhardt Ltd, Glaxosmithkline Pharmaceuticals Ltd, Aurobindo Pharma Ltd and Dr. Reddy’s Laboratories.

Indian healthcare industry is also profiting from medical tourism, which is growing at a fast pace. Tourists come to India to attain quality healthcare at an inexpensive cost. So far, 13 hospitals in India has been accredited by the Joint Commission International. So, reduced cost, easy communication, since most Indians speak English and international standard, has make India the prime destination for healthcare. According to the studies conducted, around 450, 000 foreigners have come to India for healthcare last year. The Indian healthcare industry is working hard to meet the growing demand, by striving to match the international medical healthcare system.

To tap into the growing market of the Indian healthcare industry, an International trade exhibition along with conference was held at Pragati Maidan in New Delhi on March, 2011. There were around 300 famous manufacturers of medical and technological equipment from 10 countries. Each country showcased their latest and innovative equipments. The aim of this exhibition was to offer Indian industrialists the chance to create mutually beneficial partnership between the global and Indian businessmen. This exhibition was a platform for medical fraternity and businessmen to invest and compare the advance in medical equipment.

The Indian Government is onto state funded healthcare insurance schemes to support the poorest section of the society, while the corporate section is providing quality care to the demanding general public. Hence, through development and delivery of affordable, basic healthcare, the Indian healthcare industry, is all set to enhance the infrastructure and healthcare throughout the country.

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