Investment Opportunities in India

May 3, 2013

Investment options in Indian education sector

Education is the vital key for modernization. The importance of education can be realized from the fact that all modernized societies are emphasizing on universalization of education as a mode for sustained economic development. There is a huge demand for upgradation of education sector in India, as the country is expected to have a surplus of 47 million people in the working age group by 2020. The consumption trends predict that an urban India is spending nine per cent of his wallet on education while the rural consumer spends only six per cent.

Education in India

In the past few years Indian education sector has witnessed a series of changes, which resulted in a significant increase in market share of the education industry. With economic growth and enhanced technology it has become necessary to develop the Indian education sector. Funds are a major concern in the market to meet this demand. The Government of India has taken many initiatives to attract investments from non-resident Indians (NRIs) for the development of education infrastructure. The Government has also opened the doors for foreign universities by passing Foreign Educational Institution (Regulation of Entry and Operation) Bill, which will help in bringing foreign investments in education in India and shaping the education industry structure specially pertaining to higher education.

Growth drivers of Indian education sector

  • Demographic advantage
    • As per Census 2011, 35.3 per cent of the Indian population is under the age of 14
  • Increasing awareness
    • Increase in awareness towards education as a priority and essential tool for career growth
    • Increase in job opportunities and salaries offered making investment in education in India prudent
  • Human Resource driven economy
    • Increase in the demand for an educated skilled workforce by services sector
    • Share of service sector in GDP increased from 30% in 1950 to 55% in 2007
  • Technology aided delivery
    • Increase in penetration of technology resulting in virtual learning and education delivery
  • New employment avenues
    • Newer employment avenues such as knowledge process outsourcing (KPO), legal process outsourcing (LPO), retail, aviation, animation etc. demanding highly skilled manpower

Investment opportunities in Indian education sector

Education sector in India is also considered as one of the major areas for investments, as the entire education system is going through a process of renovation, according to a report ‘Emerging Opportunities for Private and Foreign Participants in Higher Education’ by PricewaterhouseCoopers (PwC).

The Government of India has allowed foreign direct Investment (FDI) up to 100 per cent through the automatic route in the education sector.

According to the ‘Indian Higher Education – Real Estate’s New Emerging Sector’, a study by real estate consulting firm, DTZ, the Indian higher education sector needs 5,550 million sq ft of additional educational space (excluding support services like hostel, cafeteria, recreational facilities) to meet the Government of India’s 30 per cent Gross Enrollment Ratio (GER) in higher education target by 2020.

The sky rocketing economic growth will require huge number of engineers and management graduates which mandate infrastructural development to address the demand. Entry of foreign universities would not only intensify the competition, but also provide an international platform to the Indian students where they can achieve quality learning.

March 23, 2012

Infrastructure in India and its Varied Opportunities

The Infrastructure for India can be based on power and electricity and it is a common knowledge that these infrastructures needs serious built ups, the service sector has taken a leap into excellence and is inviting more and more clients from abroad to set up their customer service industry in the Indian market. The transport is another sector and the labor migration and security all are different sectors that need to be explored a little more so that they can bring in more prosperity for the market. The infrastructures can be improved by more planning on each side and sector and then investing on them so that they grow.

The labor cost are lower in India than its competitors and the hence there is no shortage for cheap labor. The fresh stream of air in the industries can be brought as incentives from different governmental bodies and public sectors. There are various Investment Opportunities for the Indian market as it is a source for raw materials and there is the modern work forces that bear a better communication skill that can bring in the changes. The investment can be made by investors who are looking for different ways to earn profit.

This democracy is one of the largest in the world and hence it has become a top resource for the countries worldwide and developed the growing opportunity for different Infrastructure for India for different manufacturing units. The deposit of natural resources like iron ore, coal, titanium ore, petroleum, mica, limestone, dolomite and many other such ores give India a lot of opportunities to channelize its resources. The area that is covered by forest is also vast and therefore can be tapped for other resources like the flora and the fauna and the different rare timber and vegetation.

The Indian economy has traditional farming by using modern agriculture. It has a chunk of workers who work on handicrafts that are done by using bare hands and small machines propelled by hand. The Investment Opportunities will be seen with the large industries like the large machine driven manufacturing units and service units. The food producing units cater to the food for the people all over the world. The industry based on production of sugarcane, rice and tea have also grown to a great extent and there are also the products from milk, fruits and vegetables ruling the market and these can compete well in the global market.

This is a land of diverse economy and varied resources. The Infrastructure for India does comprise of areas that have not been tapped properly as yet and other side shows us sectors that has grown and has brought in economic restructuring for the country. The industry that introduced Foreign Direct Investment are the service sectors, fuels and chemicals, the area for electrical equipment and the construction industry and the telecommunication industry. The drug and food processing are other areas that have grown and the recent growth has been seen in the outsourcing industry. India still has areas that has huge potential and not yet been tapped and they can help the Indian states and the country gain prosperity as a whole.

Indian Economy and its Different Phase for Growth

The economy of Indian subcontinent was as low as the other developing countries and it has come up slowly and steadily as time went by. Being a huge expanse, the Indian population has got varied resources and type of people. The Indian Economy has grown since the time of the Indus valley civilization. The days during the rule of the East India Company had been a serious downturn as the villages grew dependent on the East Indian merchants and had stopped normal farming activities. The raw materials were bought at much cheaper rates than from any other countries and the finished goods were forced down to the people of this continent at an exorbitant rate.

The Business in India started to grow when India got Independence and started to work hard to develop the economy to be self-reliant. There came up different policies and plans that helped in the growth of the economy. The main support was from agriculture and then the other side was the industry that was formed for extracting raw materials. Then industry started to grow from the knowledge of manufacturing from the raw materials. The Gross Domestic Product was calculated at 2.3% in the year 1951-52. The current GDP is at 9% as calculated for the year 205-06.

The trade and manufacturing industry came up and then came the foreign investments for liberalised trade and other reforms started to support the economy to flourish. The Indian Economy started to gain momentum as Government came up with new and better ideas and the policies that they introduced helped the economy to be liberalized. The reforms started from this point and the economic growth started with the introduction of trading of the popular brands. The foreign investment in India started and kept on growing at a steady rate. This diverse economy has helped the national and the global economy too.

The current trend shows that there are few Businesses in India that are good for the entrepreneurs and few such businesses are tourism and the automobile business. Indian population love to move around and thus the national spots and few International spots are good for the Indian citizen and there are foreign tourists who visit India to explore its beaches and deserts, mountains and wild life and hill stations and rural villages , all of which have so much to offer to the tourists towards full enjoyment . The industry related to the automobiles and the automobiles parts are a good source of income for the world over and India has got a good chunk of the industry thriving in Indian market.

The textile market has been a strong point for Indian market from the past and as days passed by, the industry has come up with modern style and apparels, textures and colors and new ideas. The other such zones that have opportunity for the Indian Economy are export of software to the foreign countries and the engineering goods for entrepreneurs having rising demands for such products. A few challenges like a huge population, unemployment and poverty are still there to hamper the growth of the economy but as there has been a steady growth in so many sectors, the Indian businesses will keep prospering the economy of the country in the days to come.

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.

November 9, 2011

Investment in the power, education and finance sector in India: An Overview

A global recovery was witnessed during the 2nd part of the FY 2009-10 and on the back of it 2010-11 kicks off much but the equity market no more delayed to take the cue at a much earlier stage. Since June 2009 to March 2010 a trend remain bound to the range could be seen in the market and it ranged from 4500 – 5300 on the Nifty Index. This particular trend in the movement has been pointed out as a consolidation based on a broad scale after the market recovered at a high pace from the trough levels encountered during the recession period.

The promising part is that the market condition again came back to the 5300 level at Nifty and a breakout is varying much on the go. Hence this is the time to be prudent enough to explore the various sectors and the industries in order to find out opportunities to put the hard earned money in the highly profitable sectors. Here are few choices for you to decide on which had been the high flying sectors during 2010-11 and were considered as the winners. Hope this will help you to gather little insight to help in your investment.

The growth story of India is certainly indebted to the increasing rate of power generation in the country. It can be well said that energy is one of the components that has largely contributed to the development of the country.

One of the important objectives targeted by the government of India is electricity for all and the deadline is 2012, which will be by the end of the 11th Five year plan. With an exponential increment in the demand of electricity is leading to greater opportunities for the investors to plough the mullah in both private and public sector. The power sector in India is thus gaining more significance with each passing day. The thermal power plants based on generation of coal is at present accounting for about 2/3rd of the energy requirement of the country and the increasing awareness of the government about generating power by means of cleaner nuclear power plants is also on the rise.

On the other hand investment in the Indian education sector is another lucrative option and is going to reap huge profit if the money will be ploughed in a planned manner. One must explore the roots of the Indian education sector and find out as many options as possible and then zero on a decision. The financial services sector is another nice option. As it is often been said that the banking industry reflects the financial health of the country and even enables the trading activities to greater scale. The banking sector in India emerged in flying colors during the recent crisis struck the global economy and that too on the back of the stipulations laid y the Central bank. Therefore the financial services sector in India has indeed facilitated the quick, hassle free transactions and other developments by means of offering unmatched services.

October 31, 2011

Growing Economic Standards Leading to Greater investment options in India

The scope for business in India is immense and this has led to more investment options in India, The high population density in the country has given rise to great opportunities in the field of business guarded by a range of developed skill set. Thus India has grown as one of the significant economies in the world having immense potential towards long-term growth. Based on this investment strategies for India can be well formulated.

During the last couple of years the economic growth rate in India was around 7% p.a, before it was hit by situations like credit crunch, recession prevailing round the globe. The growing up economy has attracted bulk of investors to go ahead with investing in India. The growth has been backed by the various industrial sectors to a great extent. The sectors mainly include technology, manufacturing and service industry. The country is yet to grow its economy and the eminent business analysts believe that very soon the country will join the league of the top economies around the world.

One of the major threats for the government of India in going ahead with the growing economy is nothing other than the diversified wealth distribution in the region under which a favourable part of the population enjoy higher income and a luxurious living and at the same time another half of the population just survive on just a few dimes and are highly poverty stricken. Unless this inequality in wealth distribution and the situation of poverty could be eliminated, the economic growth will continue getting struck at the mid level.

The political history of India has continued to remain controversial and difficult for time immortal but it is with the introduction of new economic policies back in the year 1990 , changes in economy could be traced . It is from this time around the free economy policies came into being eliminating the socialist policies and principles of the by gone years. This has even created new investment options in India for overseas Indians and even the domestic investors. Thus a new era in terms of business, economy and investment began in the country.

There are scores of companies across the world having immense exposure to India. Some of them are connected through partnership while the others have full control through the domestic companies. The main consequence to this was getting easy exposure through collective investment strategies, direct equities, exchange traded funds and several others. Although, it is always better to have professional advice along with this at all time. Each of these investment vehicles comes with its own set of risk/reward ratio and in order to undertake the risk one must align the particular risk to their own risk profile, investment strategies and financial needs for future.

As huge potential has been forecasted about the growth of the Indian economy, so it is high time now that India must go ahead towards the fulfilment of its own potential and increase Investing in India from Overseas Indians. As more market will open up for the overseas and domestic investors in India, the economy is gaining more transparency with reduced rate of risk profile.

October 4, 2011

Investment: Destination India

India is a country with huge manpower that is equipped with enormous skills and this is one reason for investing in India and evident in the growing number of foreign companies and overseas investors. Despite this and the fact that Indian economy belongs to one of the most conspicuous economies around the world, there has been a sharp fall in economic growth that was earlier projected to grow rapidly at least in the long run. The performance or behavior of the Indian economy has particularly fallen in the short to medium term.

During the period of last five years that refers to the time exactly before the recession and the global financial crisis the economic growth was around seven percent on a yearly basis. Due to this strong and impressive growth, investing in India seemed to be a favorable prospect for the overseas companies and we have witnessed the arrival of several foreign companies in this country. The IT and service sector industries have provided an impetus to the economic growth and according to the financial analysts, within a very short time India will join the frontrunner and powerful economies of the world.

During the passage of time, foreign direct investment has emerged as one of the most significant and inalienable aspect of the Indian residents who are settled in foreign countries or NRI’s. On the basis of a survey called World Investment Prospects Survey conducted for 2010 to 2012, India is also one of the most preferred destinations of foreign direct investment. This survey was conducted by United Nations Conference on Trade and Development. In addition to this, another survey conducted by one of the big four firms Ernst and Young, the country has ranked fourth as far as foreign investing is concerned and it is referred to as European Attractiveness Survey.

The growth of foreign investment in India has increased three folds with a variety of business prospects and potential that is available in this country. However, at the same time, there is an increased need for a guideline on strategic investments so that the foreign investors keep pouring in. In other words, to have a better orientation of foreign investments and to maintain the flow of foreign investors, it is possible to get the expert’s guidance in the Government website that is referred to as OIFC.

According to the opinion of several people, the success of India with foreign investments and economic growth has been showing all along though the journey was not always pleasant as there has been an equal amount of delay during this process. Whether the high growth forecasts for the economy helps to provide a boost to the Indian economy or otherwise cannot be predicted immediately. With the country has opening doors to the foreign and domestic investors, the risks of investing in a developing economy should be reduced to a large extent.

September 21, 2011

FDI: The current trend of investments

When we discuss on FDI, it is very essential that one is able to make a clear demarcation between the FDI flow as well as the FDI stock. The former refers to the amount of the foreign direct investment which has been undertaken across the period (which normally is taken as one year) whereas the stock of FDI implies the total built up value of the foreign assets which are owned for a given period of time.

It has been seen that there has been a significant increase in the investment opportunities in the FDI domain during the years 1990 to 2000s. This increased growth rate is due to the political stability as well as the other economic factors present within the developing countries. Further it has also been seen that with the advent of globalization, the economy of the world has made organizations invest across the globe to have the presence felt in almost all the regions of the world. The increase in the inflows which the county of US has been seeing is another shocking but a significant trend where the inflows have increased but on the other hand its counterpart, the US –FDI –abroad has not gone that high. Once can conclude the growth if the US inflows to be high due to the lucrative US markets and also due to the falling dollar value which has been seen in the recent past.

FDI also have several benefits like rapid approvals for the investments, concessions in taxes, better liberalized environment for operating, subsidies on loans, grants, etc are few of them. The country (i.e. the host) also gains benefits due to the FDI’s in the increased job opportunities, better living standards, enhanced economic growth, etc. Hence FDI’s are always beneficial for both the host country as well as for the foreign investor.

Governments have also devised many policies for attracting the FDI’s as these funds can be used for national development projects and strategies. Governments also provide various types of tax benefits to the investors so that higher amounts of investments are made by the foreigners. The basic strategy of the government is to make the FDI investment all the more lucrative for the investors to increase investment opportunities. The common ones which are implemented by the government is to provide tax benefits as well as reduced interest rates on loans which have till date run successfully.

The developing countries have now become hot attractive spots for the FDI’s due to the better political stability and economic factors. Countries like India have accumulated a lot in the form of FDI from the other foreign countries as the economic and political stability of the country of India gives an ease to the investor to invest without much contemplation. We have seen how the FDI amount varies and increases in the Indian market when the stock market face jolts and jerks.

Business and Investment Opportunity at Large

After the post independence strong socialistic & economic reforms, the economic growth climbed steadily & after 1991 the embracement of open market principles for international completion & foreign investment, Business in India today offers great Investment Opportunities for domestic & international sectors. Strong foreign fund buying has kept the share market chart favorable in spite of recent fluctuation in world stock market. Recently Indian Rupee was raised to 21 paisa against one time ruler US dollar. Initiating a business involves certain steps. A directorate of Industries is the nodal agencies who guide new entrepreneurs. An interface between industry & various agencies are provided. Support provided regarding Investment Strategies & single point window service can be availed.

Special economic zones are created for foreign investments. In the export oriented units 100% foreign direct investment is permissible. A tax relief is provided thus making India a Mecca for Investment Opportunities. Among the non-export incentives no tax levied for the first five years. The Indian business trend was Information technology bent from early 90s. Currently there are huge investment options in infrastructure, petrochemicals, pharmaceuticals, and telecommunication & service industries. Considering the nature of business the Investment Strategies are designed accordingly. Foreigners are utilizing billion heavy Indian markets not for only their expansion but to use as operational hub also.

Some key areas like infrastructure, power, automobile, electronic hard ware etc. are receiving attention not only for foreign but domestic ventures also. The principle of inclusive growth is striking the right balance by creating huge job opportunities for semi skilled or unskilled enormous work force. The compliance to inclusive growth has definitely contributed to the GDP rate. India with a quite matured capital market backed by liberal policies& strong banking system has turned to a profitable business ambience both for domestic & international businessmen. Both Mutual Fund and Equity Fund investments suggest a favorable & significant return. Considering the service industries like hotels, restaurants, placement concerns Indian scenario is enviable. Along with development & advancement as mentioned before the infrastructure industry in India is booming, which can accommodate both types of investors. As far as strategies are concerned they vary from one to another business. Business strategies always have to take into account government policies, restrictions & relief. It is not only foreign investors the domestic counterparts are also getting various reliefs for promoting a particular type of business which may benefit people at large.

In a nutshell today India can boast of enriched business environment guaranteeing high return & offering employment to huge work force.

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