Investment Opportunities in India

June 8, 2010

Fillip to Investment Sectors in India, Opportunities Abound

Investment sectors such as infrastructure, healthcare and education are getting the requisite fillip for growth, owing to the channelization of foreign direct investments (FDI) into India.

Mr Subir Gokarn, who is the Deputy Governor of Reserve Bank of India (RBI), recently stated that India is becoming an investment destination. Further, he also indicated that investment opportunities in India were expected to gather even more scope in the coming days, on the back of enhanced liquidity in the global system. This rising liquidity has been evinced owing to pumping in of revenues for the euro rescue measures and Greek crisis management by governments. Several investors too have begun looking at India as a ‘flight to safety’ measure, i.e., a safe haven for investment and better returns.

The Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, too recently opined that India had an edge over other economies being a developing nation and offering more potential for investment as compared to developed markets. He confirmed that India was likely to provide a very hospitable environment for foreign investments in the years to come and would attract good inflows.

Of late, Indian equities too have been rated as the second best avenues globally, after Indonesia, for giving the best returns for investments, according to report titled ‘Asia Capital Markets Monitor’ brought out by the Asian Development Bank. This is quite encouraging for all overseas investors, who can now look forward to employing some bold investment strategies such as investing in emerging economies such as India.

The government has in this respect, brought out the simplified FDI document which acts as an investment guide to help overseas investors with the caps and processes of investing into several sectors. Further, the Reserve Bank of India has also begun reforms such as revision of the pricing guidelines with respect of transfer of shares / debentures /equities etc by way of sale for overseas investors. The public private partnership initiatives such as OIFC provide a forum for channelizing investments through an online facilitation platform.

Attracted by the tremendous scope for growth in sectors such as education, many investors such as venture capitalists and private equity players have invested more than US$ 140 million in the sector so far this year. This is almost 50 per cent more than the investment in 2009.

States in India such as Karnataka and Kerala too have all the makings of becoming favored destinations in several sectors for all investors. Kerala can now boast of having amongst the top tourist spots and is turning into a medical tourism hub in the country. Karnataka is already rated as the intellectual capital in the country. All in all, the prospects in India seem rosier for investors with factors such as reliability, liberalized reforms etc contributing their bit in opening up new avenues for investment.

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