Investment Opportunities in India

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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Real Estate Sector in India – Invest with Confidence

The real estate sector in India is ready to take a big leap in the coming years, after a year and a half of slow stabilization. Many property markets have shown an inclination towards a sustained healthy growth, if not a fast one. The experience obtained during the slowdown has proved to be a valuable lesson to the strategists of real estate, for the coming years. Most of the stakeholders like developers, material manufacturers, investors, occupants, property consultants, developers and policy makers, have become stronger than before. And, if they have learnt a proper lesson from the past, they have to be cautious and diligent.

The development in the real estate sectors shows a growth in both, the commercial as well as the residential areas. It has also been predicted that there will be a shortage of houses, amounting to 26, 53 million, by the year 2012, which offers large investment opportunities. The real estate and housing sectors have been known to have received US$ 453 million in foreign directive investment. Even though there has been a sharp rise in property prices, home loan interest rates and effect of global recession, the real estate sector in India has done quite well.

The investment factor in the power sector in India is also very positive. India has the fifth largest power generation capacity in the world, which is around 4% of the global power generation. According to the latest reports, the Indian power as well as the distribution transformer markets received earning equal to around US$ 2.67 billion in 2009, which is estimated to reach US$ 4.04 billion by 2016. Many private companies like Reliance and Adani Power have been known to achieve financial closures of power projects. In fact, Reliance has two power projects, while Adan I Power has started work in Mundra power project.

Since, real estate is one that brings long term gain for investors; India has shown the way, as a profitable destination, to get assured returns from real estate investment. The desire for commercial and residential properties in India has been the most, among Asian countries. Many of the modern amenities, great infrastructure, along with clean environment, well connected roads, good transport and easy access to the other parts of the country, have been the features that has brought in investors to India, from all over the world.

Real estate sector in India is without doubt a money spinning option for investment. There is outstanding property growth in most of the major cities of India. Some of the most favorable cities having a boom in real estate include Delhi, Gurgaon, Chennai, Noida, Hyderabad, Pune, Jaipur, Mumbai, Bangalore and Chandigarh. All of these offer international standard residential and commercial spaces, to woo investors from abroad. There is a vast list of renowned property builders and developers in India, who have come up with exceptional property projects and have aspired to build up the standard of infrastructure. India, one of the fastest growing countries in the world, is emerging as the real estate investment place with secure returns.

Why Indians in Overseas should invest in India

There are some great reasons why Indians in overseas can safely invest in India.

Firstly, the size of this huge country occupies the 8th place among the other large economies of the wotld. The fields of investments and their opportunities are extremely varied and promising for every investor.

Secondly, the growth of the economy is at a tremendous pace in all categories whether it is education, industry or art and culture, it is expected to grow five times in the coming twenty years which is attracting investors from around the globe.

Thirdly, diversity in the investment arena is another very important reason why Indians in overseas can safely invest in India. There is a wide range of choices for investments like pharmaceuticals, consumer products, agriculture and energy, education and property. The service sectors too are strong as in IT and software services. It has been proved that besides export of resources and commodities, there are other means also for the rapid development of an economy.

Fourthly, in spite of being one of the youngest countries of the world, India has a high standard of education, high grade skills in the English language, enterpreneurial culture and her democracy will take her to the top in the global market.

Fifthly, the savings rate of India is about 37% that contributes to the requirements of the various investment sectors. But to upgrade the feeble infrastructure of the country the Indian government is taking intense measures for encouraging foreign and private investment India.

Sixthly, the private sector has been a great force in the growth of the economy of India. Every sector is playing a vital role to build up a booming market that will be less affected by external pressures.

Seventhly, India has a strong financial sector. It is highly diversified and is well regulated to stand against all kinds of financial crisis. It has maintained a high standard, transparency and resilience. The banking sector of India is extremely strong and possesses a commendable standard of balance sheets. Well-built corporate governance and highest levels of competition has taken the Indian economy to the top most position in the world market.

The quality of Indian market in terms of stock exchange is indeed promising. The environment is well governed and the stock market is said to have generated over 15% returns in the past years and is expected to flourish more. Those who had invested in the Indian market have doubled their gains unlike other countries.

Another very attractive area of investment in India is the tourism department. This huge country with diverse natural regions, various cultures and religions have beckoned tourists from all around the globe from many years. India is a tourists’ paradise. You have the snow-clad mountains, beautiful beaches, exotic gardens, exciting cities and innumerable holy shrines.

Irrespective of caste and creed people flock to this country to experience its culture and education. So Indians in overseas can easily invest in Indian tourism without any risks.

Investment Opportunities in India for NRIs

There are various fields where one can invest which do not have any risks. They are mainly the following:

  1. If you are looking for long term investments you can opt for PPF or Public Provident Fund and insurance policies. They are safe and tax exempted too.
  2. You can get good returns from Equity investments and Mutual Funds for which it is wise to consult reliable brokers. There are medium term and short term options.

If you are an NRI, there are other ways of investing in India. Buying shares or debentures that are convertible and non-convertible in nature of established Indian companies is one option. Banks also offer various schemes in Portfolio Investment. These are quite safe and the returns too are quite large.

Investing in the education department like schools and colleges is a very good option. It is well known that India offers the best of education and there is a great need of standard schools and colleges here. So if one invests in such educational organizations there shall be no looking back.

Another field of investment which needs to be mentioned is the real estate as the rate of property is very high and is on the rise every day. It is a smart choice for those looking for investment opportunities in India.

However if you do not want to take any risks, the best option for you will be the Fixed Deposit schemes of the banking institutions. The annual yields are quite high as 10.5% per annum.

Stock market is another option for investment opportunities. It has been found that the returns are the best in India as compared to other countries. You can make direct investments in stocks or in various mutual funds. Some of the mutual funds have shown a continuous rate of high returns that will give an edge to your investments in India.

According to the World Bank the economy of India is the fastest growing economy of the world after China. Foreign investment in India is sure to yield high returns and those who are looking for long term investments in the various industries of India would surely meet with great profits. The success of foreign investments in India primarily depends on the estimation of potentiality of the field concerned. Every step taken for a large investment must be well calculated from before. Companies must have a well organized team and thought-out strategies. Intense research should be done before any decision is taken by the individual or the company that wishes to invest in India.

Investment opportunities in India are very well pronounced no doubt as it is a growing economy that welcomes all kinds of investors with open arms. But it is always right to go through every detail thoroughly before any investments. Foreign investment in India too has a great prospect and there are innumerable fields of investments which have to be selected by the investor according to his capacities.

Increasing investment opportunities in India

Investment is the best way of making money grow without making any effort. Investment helps money grow by adding hefty returns on the sum invested by an individual or concern. Unlike a job or a business, one doesn’t need to make any physical effort to add up to the sum invested. It grows automatically. But all types of investments involve risk that one needs to be prepared to take. India is among the fastest growing countries in Asia and it offers grand scopes for people to invest and enjoy hefty returns. Investment options in India are diverse and majority of them are low in risk.

The control-free economy of India allows the country people as well as the NRIs and international investors to put money for rolling. Several industries are growing at a great pace increasing investment opportunities in India, since most of them are almost untapped. Besides, traditional investment options are there for people who are not ready to take the risk of putting their money on growing sectors.

Traditional investment options in India include Fixed Deposit, Insurance, Public Provident Fund, Stock Exchange, Equity, Mutual Funds, National Savings Certificate, Gold Deposit Schemes, Real Estate and NRO Funds. Investing in FD is the ideal investment options for the aged people as better returns are offered by the banks and it also acts as a tax saver. PPF is a long term deposit plan but at the end of the term, the invested money comes out with hefty returns added to it.

PPF and FD are also safest since they are supported by the Central government. Investing in stock exchange is certainly risky but if you play with patience, your money may grow very steadily. To be safe, you should check the investment portfolio of the company that you are buying shares of. The level of risk involved in mutual fund investment is similar to that of stock exchange but the possibility of earning profits is also quite fare here.

Gold Deposit Scheme is a relatively new concept but at this point of time, it is the best way to invest money. The value of the yellow metal is going up in bullet speed and hence you can expect mammoth return on your investment. However, investment is gold deposits is not open to individuals in India. It is for trusts and companies only.

Another grand investment opportunity is now being offered by the real estate industry. The real estate sector in India is growing at a rapid pace and the way value of land and rate of interests on home loans are soaring, one can expect quick and hefty returns on the money invested.

Other industries and sectors that are offering grand investment opportunities in India at this moment are Education health-care, Software Industry, BPO-KPO and food processing. As the Government has concentrated on improving the standard of education, scopes for building new schools and colleges have come up. The health care sector too is developing very fast but lack of updated infrastructure is creating scopes for the foreigners to invest their money here.

Growing industries encouraging people to start business in India

India is developing very fast as a nation and its economy is growing steadily opening new avenues for people to start businesses. The country is extraordinarily rich in various resources and offers very cheap labor that entrepreneurs can make great use of. Doing business in India is a lucrative option for people having financial strength and the will to take the risk. The best thing about the country is that majority of the industries and sectors are almost untapped and hence the fear of facing stiff competition is less. Young Indian entrepreneurs have identified these sectors and have started to make foray but yet, there are lots of scopes for the international business houses to start ventures here, since the country is inviting FDI in various sectors. FDI India is certainly a term that is alluring plenty of international business persons and firms to jump into ventures in this Country with huge business potential.

Some of the existing and emerging sectors with grand scopes for doing business in this country are:

  • Tourism
  • Automobile
  • Textile
  • Social ventures
  • Software
  • Engineering goods
  • Franchising
  • Training & education
  • Food processing
  • Corporate demands
  • Ayurveda & traditional medicine
  • Organic farming
  • Media
  • Toys
  • Packaging
  • Healthcare
  • Energy solutions

Tourism is one of the most booming sectors in India and it offers enormous scope for new entrepreneurs to test their fortune. Countless number of spots for scenic beauty, pilgrimage sites, historic sites and adventure tourism make the country a tourism hub and allures business people to invest in the hospitality business.

Automobile is another major sector in India and with the rise of people’s buying capacity, the market is expanding continuously. Apart from national brands, foreign automobile majors are enjoying significant share of the automobile market here.

Indian textiles are acclaimed across the world for the superior quality fabrics. Textile goods are exported in bulk to different corners of the world on a regular basis. With a rise in demand, the textile sector is giving greater scopes for doing business in India to the local people as well as international business houses.

Social ventures too are very prospective as a business at this time as unemployment is a major issue in the country. Employing young, talented and skilled youth in works could make different business ventures viable here. Availability of cheap labor is an added advantage.

Software industry is growing at a rapid speed in India creating opportunities for entrepreneurs to make their foray. Increasing demand for advanced software has made software development a lucrative business proposition. Besides, KPOs and BPOs are creating spaces for business houses to invest and set up companies.

All these industries are going to expand significantly in the coming years as demand for their services is on a continuous rise. Hence, if you want to establish yourself as an entrepreneur, take the risk of playing with your money. You may also start with small ventures in comparatively smaller sectors like food processing, toys and packaging. And since the industries are ready to welcome FDI India is going to be a haven for the international entrepreneurs in near future.

January 9, 2012

The Best Investment Opportunities in India

Presently it has been found that most developed countries are increasing their investments in India. The reason behind this is the varied industrial opportunities that this vibrant democratic system of the country offers to investors. The legal framework of the country is highly expansive. The infrastructure of India also is growing rapidly as it has a good network of business institutions, banking facilities and the capital market is highly organized.

The various sectors that are worth investing in India are namely:
Education: The education system of India has been praised by the world educationists from a long time. Along with private investors the government too is taking care to see that the quality of education is of the best quality. Actually the population of India comprises of 50% youth. There are 367 universities and about 18000 colleges. Teaching is a respectable profession and many sought after it. International schools have entered the country too because they have seen great prospects. Biotechnology and aeronautics are very popular courses of today in India.

Software Industry: This is another most promising field where investments are sure to be profitable. India is well known as the IT hub and that is because the intelligent youth of India are providing great services at a very reasonable rate. Moreover, it is continuously growing and the revenue output is very high. The software companies are CMM certified which is an added advantage that attracts investors to this sector. Hence it has been rightly thought that investing in this giant software industry is surely a good decision.

BPO Services: Along with the software industry, the KPO (Knowledge Process Outsourcing) and the BPO (Business Process Outsourcing) services that are linked to it are also growing at a tremendous rate and that is also another reason of investors taking great interest in this field. According to the facts stated by NASSCOM, the BPO industry only is expected to reach a value of $30 billion by the year 2012. It has been predicted that the KPO industry is also supposed to reach the $10 billion by the 2012.

Food processing: India is an agriculture based country. Among the various flourishing industries, food industry has gained great importance as it acts as a connector between industry and agriculture. Hence it is quite obvious that the industry of food processing is bound to be the largest and the best field for investment opportunities in India. It is patronized by not only the government but is supported by cooperatives and private investors also.

Stringent rules have been formulated and government bodies set up to keep control over the functioning of the various units. To ensure safety of the investors government has introduced the National Food Processing Policy also.

If you are interested to invest in India Online you can very well do so as the economy of the country is always developing and therefore it is the appropriate market for investment. India is highly influenced by the global markets and that is seen in her purchasing power.

So if you are planning to invest in Indian Industries, then look straight to the world’s largest super power. Investing in India is surely the right decision.

Top Reasons for Investment in India by Overseas Indians

Real changes are being taking place in the scenario of Indian economy and this is really going to leave a great impact in the prospect of India. Hence, the much predicted and awaited glory of Indian economy in 2050 won’t just remain as a mere hype but will soon become a reality beckoning the proud Indians.

It is been anticipated widely that the performance of the external sector will continue to show a overall development in all spheres and the revolution taking place worldwide in terms of outsourcing bears adequate testimony to this. It is just not in the service sector the huge development can be witnessed but also in the research and manufacturing sector the welcome changes can be noticed. The liberal rules and policies and market guarded by well devised regulations are the principal sources to draw capital towards the growth of India on the investment side.

Now let’s concentrate on the fact that why investment in India is a lucrative option for Overseas Indians. Let’s harp on the chief reasons attracting the NRIs to decide about investing in India.

The reforms started taking place about 20 years from now when the twin devaluations initiated the major push during the year 1991. Alongside, several other developments took place around the same time in order to make the Indian economy resilient enough.

The key factors include exposure of the Indian economy to the foreign investors, the growing strength of the domestic financial system, the liberalised import policies, and the interest and exchange rates being rationalized, the environment backing up the industrial investment and the people-intensive services sector has turned out to much more conductive.

India is growing steadily as the fastest player among the global economies. There had been changes in the government bodies but it never hindered the growth in any way. In the long run the measures will be more pronounced as the focus will get shifted to incorporating the measures in reality. A shift in the demographics is also expected and this led to a greater amount of Indian population falling in the bracket of ‘working class’ age and this will ensure the Indian economy doing much better.

The focus on the agriculture and the infrastructure sector of Indian economy has been renewed to a great extent during the recent times and this has put forward a new thrust to the economic development in India making investment in India a much sought after choice.

The foreign direct investment (FDI) not just intensifies the domestic capital but it also helps in enhancing the competitiveness and the productivity of the economy and brings along world class technology, products/services, and processes and of course jobs. Therefore in turn a virtuous circle of higher incomes, higher consumption activity and even higher investment is triggered in the long run.

The outsourcing boom in India is also one of the major sources from which the country has benefited to a great extent. The types of ‘outsourcing’ work that have made their way to India are mostly related to research and development, manufacturing of auto parts and IT departments and networks. The Indian subcontinent is slowly gaining confidence and hence more of value added work is on the way to be landed in the country.

Lastly, the Securities and Exchange Board of India and the RBI regulating the Indian stock and debt markets including banks and mutual funds well and hence there are little chances of irregularities being committed. Therefore a drastic improvement in terms of Indian institutional Infrastructure can be noticed and this has yet strengthened India as one of the best financial markets in the world thus encouraging NRIs to invest in India.

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