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.

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March 20, 2013

Investments options for NRIs in Indian infrastructure sector

Infrastructure development in India has contributed majorly in the country’s economic transformation and growth during the last decade. Roads, ports, railways and power are key segments of the infrastructure sector. Some of the key facts related to the same are –

  • Indian Shipping segment, with 187 minor ports and 13 major ports, is spread across nine maritime states
  • The Indian Railways network is spread over some 64, 000 km, with 12, 000 passenger and 7, 000 freight trains plying each day from 7, 083 stations carrying around 23 million travellers and 2.65 million tonnes (MT) of goods daily
  • Indian road network is the second largest in the world with a total length of 4.1 million kilometres (km)

Investment Opportunities for NRIs

Overseas investors looking for high return on investments are going to target Indian infrastructure companies in the coming years, says a report by research agency Preqin. As per the study, India is attracting the highest number of unlisted, closed-end funds that focus on a single country, making it the most preferred choice among the business investors. India is expected to require around US$ 1 trillion worth of infrastructure investment over the next five years

Non-resident Indians (NRIs) investing in India can choose from sub-sectors such as power, telecom, roads and ports. The Preqin report says 74 per cent of India-focused funds will invest in greenfield projects, 84 per cent in brownfield assets, and 42 per cent will buy out the stakes of other PE funds.

Investments Policy Updates

  • FDI up to 100 per cent under the automatic route is permitted in exploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products, actual trading and marketing of petroleum products, petroleum product pipelines, natural gas/LNG pipelines, market study and formulation and Petroleum refining in the private sector. This will be subject to the existing sectoral policy and regulatory framework in the oil marketing sector and the policy of the Government on private participation in exploration of oil and the discovered fields of national oil companies
  • FDI up to 49 per cent is permitted under the Government route in petroleum refining by the Public Sector Undertakings (PSU)
  • FDI up to 100 per cent under the automatic route is allowed both in setting up new and in established industrial parks from overseas investors

Recent Investments in Indian Infrastructure Industry

  • IVRCL Ltd has entered into an MoU with the Haryana Government for the development of Rai Malikapur-Kharak road corridor which would cover a stretch of 151 km of Rai Malikapur close to the Rajasthan border up to Kharak corridor and enhance the north-south connectivity. The Rs 1, 605 crore (US$ 292.23 million) project will take about 30 months to execute
  • Indian Railways has recently launched an application namely RailRadar which envisages an interactive map to allow users to track train movements on real-time basis. Such an application has been launched for the first time in India, wherein any of the public transport system can be tracked on the internet and mobile

Future of Indian Infrastructure

India is betting high on business investors in infrastructure as the Government hopes that the private sector, through public-private partnerships (PPP), will invest US$ 350-400 billion in infrastructure sectors (like roads, ports, railways and airports) between 2012 and 2017.

June 19, 2012

Increasing Investment Opportunities in India

India has become one of the fastest growing economies. Investment growth is eventually linked to the growth of the economy. So most of the investors look for emerging markets like India, where the growth rate is higher than the developed economies. Investing in India is becoming a big attraction for the foreign investors especially due to the booming Indian economy.

Every individual wants to invest his/her money in the right means. There are various wonderful investment options in India. The challenge is to find out the right option that can not only offer flexibility, but also provide good returns in the future.

Top investment options in India

Bank Fixed deposits (FD)
This is considered to be a safe investment and generates stable income. The minimum tenure of FD is 15 days and maximum 5 years and above. Senior citizens get special interest rates on fixed deposits. The period of ideal investment is 6-12 months.

National Saving Certificate (NSC)
It is one of the safe investment options in India backed by government. The lock-in period is 6 years. Minimum amount required is Rs100 and there is no upper limit. Since the NSC comes under section 80 C, it also entitles the individual to get tax deductions up to Rs 1Lac

Public Provident Fund (PPF)
PPF is also monitored and backed up by the government of India. A minimum investment of Rs 500 and maximum Rs 1, 00,000 is required to be deposited in a fiscal year. This includes fixed-income investment for high tax payers with low risk. Any individual in India can invest in this scheme and can earn a handsome tax free return. The lock-in period is 15 years and the interest rate is 8.8 per cent calculated annually.

Stock market
Investing in share market is another investment option to get more returns. But share market investment is volatile to market conditions. Investing in the stock markets potentially yield higher profits.

Mutual Funds
Mutual Fund companies collect money from investors and invest in share market. Investing in mutual funds is also subject to market risks but return is good.

Other investments
There are various other options for business investors in India like real estate, gold and private equity available in the country. One needs to be sure of the authenticity of the organisation, interest rates, benefits and conditions before investing.

Foreign Investment in India

Foreign direct investment (FDI) in India is possible through automatic route (which does not require any approval) and government route (which requires approval).There are set of guidelines provided by the Reserve Bank of India (RBI) and Securities and Exchange Board of India (sebi) for NRI investment in India.

The government of India has created a favorable climate for foreign investors like tax exemptions, benefits from the state and central government bodies, etc. A foreign company could invest in India either by having a wholly owned subsidiary i.e. by having a joint venture with an Indian company or by having a branch office.

There are various investment options and opportunities available in India. However, it is important to invest in that instrument which suits the individual in terms of investment amount and risk.

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.

February 28, 2012

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

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.

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.

June 29, 2011

Investment Options for NRIs in India

The Indian economy has been on a continuous growth curve. This is providing the non-resident Indians (NRIs) to explore multiple options to invest their funds in their home country. The returns from India are considerably higher than those from the US or European countries.

Some of the investment options available to NRIs in India are:

  • Investment in the Indian equities markets, including IPOs
  • Investment in mutual funds
  • Company fixed deposits and non-convertible debentures of companies
  • Real estate investments
  • Government securities
  • National Savings Certificates issued by post offices in India
  • Deposits in Indian banks

Both NRIs and PIOs are offered several facilities by the Government of India. NRIs are Indian citizen who resides outside India, while PIO (Person of Indian Origin) refers to an individual who at any time held an Indian passport, or any of whose parents or grandparents was a citizen of India. While NRIs are allowed to invest in all sectors when Indian citizens are allowed, PIOs are allowed to invest only in non-agricultural sectors. A ‘24% Scheme’ allows Indian companies, except those engaged in agricultural activities, to issue up to 24% of their shares and debentures to NRIs with repatriation benefits.

The following is the list of foreign Investments which can give good returns and provide protection against inflation:

Mutual funds
Mutual funds have in its fold a number of innovative products nowadays, opening up innumerable choices for investors. The investor now has the option to choose a mutual fund that meets his risk acceptance and his risk capacity levels.

Direct Equity
As in other parts of the world, in India too stocks have outperformed every other asset class in a longer run.

Company Shares/Debentures
Direct investment can be made by NRIs in proprietary/partnership concerns in India as also in shares/debentures of Indian companies. Portfolio investments i.e. purchase of shares/debentures of Indian companies through stock exchange/s in India are also permitted. These facilities are granted both on repatriation and non-repatriation basis.

Government Securities/Mutual Funds/ National Savings Certificates in India
NRIs are permitted to invest their funds in Government securities, Indian mutual funds and certain other investments such as the National Savings Certificate (NSC). Investments in NSC can be made by NRIs subject to certain terms and conditions. However, NRIs are not permitted to invest in bearer securities like Kisan Vikas Patra, Public Provident Fund (PPF) etc.

The maturity proceeds of such investments can be repatriated if they are purchased out of funds remitted from abroad or out of NRE/FCNR accounts. However, the maturity proceeds of investments purchased out of funds in NRO accounts can only be credited to NRO accounts and cannot be repatriated abroad.

Immovable Property
Reserve Bank of India has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain any prior permission of Reserve Bank. Further, the Reserve Bank has granted general permission for sale of such property without its permission.

November 11, 2010

Indian economy: Investment opportunities to do Business in India

The Indian economy is one of the fastest growing economies of the world with good population base. The growth rate of GDP is reviewed around 8.75 per cent plus against 7.4 per cent in the previous year. The Indian economy offers the best investment opportunities even in tough times as of the financial meltdown. Investing in India or to do business in India is the latest trend followed by the developed world. The business in India and the investment opportunities showcased by the Indian economy are booming with the foreign players investing in India, to harness the good opportunities of doing business in India.

Developed countries see India as a good investment opportunities destination because of factors like cost effectiveness, ambitious economic reforms, relatively better labor intensive Indian economy with good skilled, managerial and technical manpower and commanding manufacturing conditions for investing in India. As the economic pace is picking up, demand of various products and services is increasing the investment opportunities and business in India.

The Indian economy has performed well in last six months with increased exports and good capital inflow to do business in India. With increased purchasing power parity, various international companies are taking interest to increase their business in India.

India is offering good potential for the overseas investors to make investment in India and is frequently encouraging the foreign players to consider India as one of the best investment opportunities destination. Inflation rate is coming down which is a good sign for the foreign investors as it will bring down the cost of manufacturing and increase the Indian economy growth prospects of Investing in India and to increase the investment opportunities and to do business in India.

As India economy is the fifth largest in the world and third largest GDP in the entire continent of Asia, it offers high prospects for investment opportunities, business growth and return potential of investing in India and to do the business in India. The world’s popular brands have started seeing Indian economy as the potential market for future investment opportunity destination to do business in India.

Indian economy is witnessing an increase in the FII investment by many fold and improved economic conditions and investment opportunities to do business in India – will surely help to take the Indian economy at an even better level in future. Indian economy is believed to be a superior place for investment opportunities and to do business in India, as it offers much better returns on capital.

Indian economy has come up as a very vibrant capital market and is treated as a destination filled with investment opportunities in order to do business in India. Indian economy is coming up with world class infrastructure and facilities which surely help in attracting investment and business in India. With good democratic base and infrastructure, Indian economy has emerged as a very positive indicator for attracting investing in India, besides to do business in India, specifically in front of the global investors to utilize the potentials of investment opportunities in the Indian economy for better and larger margins and growth.

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