Investment Opportunities in India

May 8, 2012

Indian Economy – A Basket of Business Opportunities

The population of India is estimated at over 1 billion, and continues to grow every year. The Indian economy is the fourth largest economy of the world, when we talk in terms of Purchasing Power Parity (PPP). The economic reforms initiated since 1991, have been providing an investor-friendly environment through a liberalized policy framework spanning the whole economy. These reforms have helped India in becoming more prominent in undertaking importing and exporting activities, and other such forms of overseas businesses.

More than 10 per cent of the employed population works in industrial fields, and these include manufacturing and production of textiles. Process outsourcing is another business in India in which economy has grown drastically over the years. Residents of India are fluent in English, they have good communication skills for doing customer service, they are conversant in tech support, and other similar service industries, so the Business Process Outsourcing (BPO) segment has good scope in India. In fact, out of the top fifteen outsourcing companies across the globe, seven of the large firms are located in India.

India also produces a good amount of agricultural products, along with development in segments such as logging, fishing, and forestry. Investment is increasing as banks have become more stable and secure, which was also part of the economic reform. India’s growth rate is approximately 7% on an average, and has greatly reduced the amount of poverty among its residents over the years. The constant growth of main industries has given more individuals the opportunity to have stable employment.

India is one of the most sought after destination for business and investment opportunities. The reasons behind this are:-

  • Extensive manpower base
  • Diversified natural resources, and
  • Strong macro-economic fundamentals

Over the last ten years, the Indian Economy has seen a paradigm shift and is on a robust growth trajectory. The Indian economy today claims of an increasing annual growth rate, deep capital markets and liberalized foreign direct investment (FDI) regime. India is one of the few economies to have withstood the recent global financial crisis and its gross domestic product (GDP) has been constantly growing in excess of 8 per cent per year. The country’s GDP has been growing at an average rate of 8.6 per cent for the last five years. India’s GDP growth projection is 8.5 per cent for FY11.

India’s economy has strong fundamentals and is host to several prominent global corporate giants that are leaders in their respective fields. According to the Global Competitiveness report 2010-11, India ranks 51st among 139 countries. India ranks higher than many countries in key parameters such as market size (4th) and innovation (39th). It also has a sound financial market (17th).

According to UNCTAD’s World Investment Prospects Survey 2010-2012, India is the second-most lucrative destination for FDI in the world. Indian markets have significant potential and offers prospects of high profitability and a favorable regulatory regime for investors.

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April 19, 2012

Pharmaceutical Industry in India – A Key Player in Outsourced Medical Research

The pharmaceutical industry in India has become a powerful and self reliant industry during the last decade. This industry has been growing even when the other industries have shown declination in their business. By 1980s, India had become the leading producer of drugs devoid of patent protection. The Indian Pharmaceuticals had moved on to making drugs for cancer and AIDS. From 1990 onwards, this industry had acquired a modified role of utilizing a direct to consumer way of advertising and producing SSRIs such as Prozac. With the high revenue from many drugs which were a runaway success, this industry expanded from the 1990s to the 2000.

The state health care industries in India
The Indian healthcare industry is considered to be one of the most profitable markets and is on the way to expand further according to the latest reports. India is more competitive because of the low cost and the sophisticated treatments offered at hospitals. There are many key trends which are boosting the healthcare sector in India. Medical city is one of the latest concepts offering great opportunities. Similarly, there are great prospects for day care surgery. The latest infrastructure is known to maintain around 60% of surgeries if done on a day care method.

The pharmaceutical industry in India is one of the countries which are all set to receive the highest R&D dollars, ahead of countries like Russia, China, Israel, Philippines, Canada and Ireland. India has the advantage of having sophisticated infrastructure and the highest English speaking clinical community with graduates who are trained in the west. The affordable operations, remarkable quality management and technology have made it one of the most sought after countries.

Standing in the world
The Pharmaceutical industry in India is the third largest in the world today in volume and ranks 14th in terms of value. The sales of every kind of drugs in the country are all set to reach US$ 19.22 billion in the year 2012. The exports of pharmaceutical items from India have also increased and have joined the league of the top 10 pharmaceutical companies in the global market currently. The Indian pharmaceutical companies have made a mark in both the world market and the Indian market with their skills in reverse processing and manufacturing low cost medicines.

The Healthcare industry in India is controlled mostly by major foreign companies, though there are many purely Indian pharmaceutical companies too. The foreign companies have subsidiaries in this country, mainly because of the availability of cheap labor. However, the 1970 Patent Act permits multinationals only 35% of representation in the market, which has decreased by 70% than what it was thirty years before. The domestic pharmaceuticals companies in India is a blend of private and public enterprise, like all the other businesses in this country. In the global market, India currently has a modest share of 1.2%; however, it has been growing around 10% yearly. Indian has managed to grip the global market with its new engineered generic medicines and active pharmaceutical elements.

Business in India – One of the Major Investment and Business Forces around the World

Most investors are interested in obtaining large returns from the business investments. The most common trend is to invest in small companies with a hope to acquire good profit once the business is successful. While small companies may be risky options for business investments, the profit potential may be quite high. Most small business which has little overhead can offer quite a safe and profitable investment opportunity. In spite of the instability in the housing market, investments in real estate, especially, in India, have provided safe, secure and very profitable investment opportunities.

Investment Potential in India
India is considered to be the second favored destination for investors from other countries, according to the latest reports. Conducting business in India offers big potentials for foreigners who are willing to invest in India. The report also states that the defense and aerospace industry is one of the emerging Indian market with the automobile considered as a much profitable sector for investors. The production of vehicles in India is all set to treble from the year 2009, while the auto parts area is liable to attain US$ 110 billion from US$ 30 billion during this period.

Tips on setting up business
Even though setting up a business in India is a long process and needs a lot of effort, the benefit derived surpasses the hard work. Once you have decided on the business you would like to start, you have to acquire a Director Identification Number. This is obtained from the Ministry of Corporate Affairs 21 (MCA21) after filling a form online to get the DIN. This form has to be printed and then posted with your proof of identity and your photograph. After getting a name for your business and paying the stamp duties online, you will get a signature certificate online. While getting a company seal is not mandatory, you might need it to issue documents and share certificates.

Business investments should be made in companies which have a good chance of sale in public securities market or have the potentials for a merger with a different company. Investing in new companies which have innovative ideas about enhancing the production and the profitability is also a good investment idea. It is best if you can gain a fair knowledge about the market before investing in any business. One must also possess a fair idea about what is happening in the world market daily.

Various business Opportunities in India
There are many exciting opportunities for conducting a business in India, especially, for entrepreneurs dealing in outsourcing technology, internet ventures, software development, e –commerce opportunity and business trends and ideas. There are lots of items which can be bought and exported. Partnering and instituting joint projects with Indian companies will offer opportunities to deal with various products without involving high cost and risks. You can also find a niche market where you can sell health care products or herbal solutions only available in India. There is also much demand for outsourcing data conversion, which is a good idea for a profitable start-up company in India. Many state specific programs and national priority level projects are being established across the country, offering big potential for investors.

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.

December 26, 2011

Great Investment Options for NRIs for Making Great Profits

If you are an NRI, it is natural that you would like to invest in some of the best agencies, so that the future returns on it are huge. There are several investment options for NRIs currently, but OIFC proves to be the best. Special facilities are often offered to the Non-resident Indian because it is one of the best promotion agencies for investment in India, especially in Gujarat. The investment types available with this organization are many, and therefore, you can carefully and wisely select from them. However, there are some special considerations that you would have to make while making an investment here.

As there are different investment types under this sector, the choice of the type would largely depend on the amount of money that you want to invest and the amount of risk that you are willing to take. Being an NRI, you can always invest in the Indian Stock Market through mutual funds or directly through the equity market. There are Corporate Fixed Deposits, Monthly Income Plans, and even Fixed Maturity Plans. Periodic investments are also a good option in that case. However, if you are absolutely confused in making the right decision, the best thing that you can do in this context is to take the suggestion of the experts in this context.

India being a land of opportunities, you would not have dearth of investment options for NRIs. You would just have to take wise and careful steps, so that you end up making the best deals. The investment options along with this line are generally long term strategies. At different periods of time, you would be able to get different beneficial features with these investment options that can certainly work great for you. However, you can always assess the market and the risk factors involved in such forms of investments, so that after a long time the profit that you earn is visible.

In addition to that, if you want to make a real estate investment, carrying out the transaction through OIFC can be wise. It is believed that carrying out transaction can be often a cumbersome task, because there are several laws and rules in accordance with transaction of property. However, if you take a closed guidance of the OIFC rules, you would definitely be able to carry out investment safely and wisely. In addition to that, you would also have to keep in mind several foreign exchange regulations in relation to acquisitions and transfer.

When you want to make a real estate investment, you should also be aware of the fact that you would be able to invest in shares of companies that are associated with the development of township, or construction development projects. You can also acquire any immovable property within India apart from the agricultural property, farmhouses and plantation properties. If required, being an NRI, you would also be able to transfer these properties to any resident of India. You would also be able to transfer the property to another non-resident Indian, as well. Therefore, there are huge investment opportunities available here for you.

Find out the Most Favorable Investment Option with Proper Investment Advice from Experts

When you earn money, investing in the right place would definitely be one of your primary requirements. There are plenty of good investment options that are available in today’s date, and therefore, it would absolutely not be difficult for you to select the best option that caters to your requirements. However, amidst the huge array of options, if think you are confused in making the right decision you can always look for some investment advice from experienced professionals. OIFC is a good organization that can not only offer you wide opportunities for investment, but the experts would also offer you valuable advice by means of which you can make a profit.

You should always keep in mind that investment in the right place is always the key to make profit and success. However, if you want to earn a long term profit, you can select the investment options from OIFC. There are opportunities not only for the non-resident Indians, but in addition to that, even general people can think of making investments here. You can invest directly through the stock markets, or you can also carry out investment through equity and shares. However, it is essential to assess the conditions of the market and the risk factors involved in the investment. At the same time, you also need to find out the amount of risks that you are willing to undertake on the basis of which it would be easy for you to select the investment options and the profit that you would make.

You can be assured that if you take investment advice from any professional experts, they would inform you well about the existing conditions of the market on the basis of the amount that you want to invest. They would also inform you about the different existing features and benefits of different investment options from where you would definitely be able to reach a conclusion for your investment.

In terms of investment, you can think of small, micro and even medium scale enterprises in the country. The government of India is also making efforts to implement large numbers of schemes and other programs. The rates of interest that you would get with each of these invested amounts would vary on the existing conditions of the market and the prices, along with the schemes on which you have invested. However, you must ensure that you select the right scheme and the right programs to get bigger returns on the amount that you have invested.

Therefore, if you are currently looking out for some good investment options, it is high time that you start thorough research. You should not only acquire information on the existing schemes and options available for you by asking the experts, but in addition to that, you must also determine the conditions of the market. There are plenty of risk factors involved in making any form of investment, and when you feel that you would be able to handle the risks involved, you can start your investment. This in turn, would help you to get good returns in the near future.

November 24, 2011

A Brief on the Pharmaceutical Industry in India

The pharmaceutical industry in India has indeed extended its base and created a greater scope for manufacturing various drugs in tablet, capsule, injectable, liquid and oral forms. This in turn has also enhanced the scope for manufacturing of bulk drugs under various therapeutic categories. There are about 400 bulk drugs available in the Indian market and among them about 300 are produced domestically. Apart from that India has emerged as one of the most favoured destination for creating successful collaboration in the sphere of Research & Development bioinformatics, contract research and manufacturing and clinical research. This in turn has made way to grow greater compliance with international standards in terms of current Good Manufacturing Practices (cGMP), as Good Laboratory Practices (GLP) and Good Clinical Practices (GCP).

Factors influencing the development of the Pharmaceutical Market:

India has created a distinct entity in production of generic medicines sold in the global market. Alongside, India has even established itself as one of the fastest players among the ones steadily growing up in the global pharmaceutical sphere. Here are some of the important factors that have accelerated the growth of the drugs and pharmaceutical market. They are as follows,

  • The enhancing rate of population
  • The growing income
  • The improvement in the infrastructure of the healthcare sector
  • The increasing rate of critical ailments related to lifestyle, such as, diabetes, cardiovascular diseases, and central nervous system; and others.
  • Health insurance penetrating deeper
  • Adopting more of patent products
  • Expiration of patents and the increase of aging population in Europe, US and Japan

This is the reason why pharma industry in India is at an emerging state with more and more multinationals from the domain joining the sector. The proof can be coined from the fact that about 15 out of 20 pharmaceutical giants ruling the world have their presence in India. In fact, drugs and pharmaceutical industry in India had been the among the sectors that attract high FDI and this quite bear testimony to the fact.

Now let’s peep into the key characteristics of the pharma industry in Indiaand this will surely enable us to find out the significant features pertaining to the sector. Here it goes,

  • Production of 70% of bulk drugs proved to be self reliant and almost the entire requirement is met by formulations within the country
  • Low production cost
  • Low R&D costs
  • Manpower decked with innovative, scientific thought
  • National laboratories with world-class facilities
  • Specialized Efforts towards process development and development of cost effective technologies
  • Increasing balance of trade in pharma sector
  • Efficient and cost effective source for procuring generic drugs, especially the ones going off patent in the next few years
  • An excellent centre for clinical trials in view of balancing the population diversity.

Now, if it is about finding the link between Indian retail industry and pharmaceuticals then it can be well seen that the estimated value of pharma retailing has been set at about 300 billions in which 15 percent of the 51 lakh Indian retail stores being chemists. It can also be said that pharma retail sector in India is so far being dominated by unorganized players but at the same time it can also be said that a major commove followed by consolidation of the pharma sector in the Indian retail industry will be witnessed soon.

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