Investment Opportunities in India

January 28, 2013

Flourishing Investment Opportunities in India for NRIs

The Indian economy continues to grow at a good pace and holds a strong position on the global map. The country’s gross domestic product (GDP) has been growing at an average rate of 8.5 per cent for the last five years.

India’s economy is amongst the largest in the world on the basis of purchasing power parity (PPP). It is today one of the most attractive destinations for business opportunities with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. In FY 2011-12, the country attracted foreign direct investment (FDI) of around US$ 46.8 billion in various sectors.

According to UNCTAD’s World Investment Prospects Survey 2012–2014, India is the third-most attractive destination for FDI in the world. Indian markets have significant potential and offer prospects of high profitability and a favorable regulatory regime for investors.

“We are keen to see FDI investment to surge in India and to that end, a favourable business climate will be helpful in going forward. We are encouraged to see there is a continued path towards fiscal consolidation. That there is a determination to improve the tax code. There is a determination to cap the subsidies at two per cent. All of those measures are good measures,” according to Ms Christine Lagarde, Chief, International Monetary Fund (IMF).

Key Sectors

India has grown to become a trillion dollar economy with a largely self-sufficient agricultural sector, a diversified industrial base and a stable financial and services sector. There are numerous sectors that offer lucrative business investment opportunities in India. Some of the key sectors are:

  • Aerospace & Defence
  • Automotive
  • Banking
  • Capital markets
  • Life Sciences
  • Information Technology
  • Insurance
  • Media & Entertainment
  • Mining & Metals
  • Oil and Gas
  • Ports
  • Power and Utilities
  • Real Estate
  • Retail and consumer products
  • Roads and highways
  • Telecommunications

Government Initiatives in supporting business investments opportunities in India

In order to enable individuals to have the complete benefit of available business opportunities in India, the Government of India has taken following initiatives:

  • The Government has signed memoranda of understanding (MoU) with 47 investors, attracting investments worth Rs 243.67 crore (US$ 43.83 million), according to S G Hegde, Joint Director, District Industries Centre, Mangalore
  • The Small Industries Development Bank of India (SIDBI) plans to utilise the Rs 5,000 crore (US$ 899.28 million) venture fund allocated to it for investments in micro, small and medium enterprises (MSME) over the next four years. 100 MSME clusters have already been identified for the establishment of credit facilitation centres, added Mr Sushil Muhnot, Managing Director, SIDBI
  • The Government of Maharashtra has decided to set up a manufacturing zone spread over 5,000 hectares under the National Manufacturing Policy. The policy seeks to give a boost to the manufacturing sector so that by 2022, it can contribute at least 25 per cent to the National GDP and add 100 million new jobs to the market. It has recognised large integrated areas called National Investment and Manufacturing Zones (NIMZ), which will be the growth drivers for the sector

January 19, 2012

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.

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