Investment Opportunities in India

April 19, 2012

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.

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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.

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.

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.

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.

December 26, 2011

Growing Investment Opportunities in India

India is a huge capital market, and therefore, investment opportunities in India are also available. India is basically a mature capital market, and the free economy of the country is actually backed by different investment options. Therefore, while investing, a person has to consider his needs for investment and the amount that he can invest. As there are different options for investment India, he can easily determine the ideal solution in accordance with the requirements. Well, in the growing industrial sectors of the country, it is expected that there would be an increase in the growth rate to about 9.95 percent during the period of 2013-2015.

Under the Foreign Direct Investment in India, the economy of the country would be backed by structural reforms, demographic dividend and also the impact of globalization. These factors would certainly work as a great source of catalyst and consequently, showcase the other different opportunities of investment that are present in India. The high industrial growth along with increased rate of private investments is certainly the crucial factors that can create an expansion of the Indian economy. This in turn, might result in bigger opportunities of investment.

In fact, this fact certainly cannot be denied that the investment opportunities in the country have mainly resulted in the growth of different industrial sectors. In short, it can largely be said that growth and investment are interrelated and only with a growth in different sectors there has been a growth in the investment sectors. This is certainly a great opportunities for the investors in India to find out new levels of investment. In fact, it was also claimed by the planning commission of India that the opportunities of investment, especially in the sector of infrastructure would be very much close to the US target of more than $500 billion.

By 2012, investment India, especially in the field of medical tourism can largely witness a growth. This is again the resultant impact of the growth of the economy. From three years in a row, there has been a growth in the Indian economy by almost about 9 percent, and greater growth is always a sign of greater opportunities for investment. Apart from Indian investors, there are also scopes of investment for the overseas investors, especially in relation to the Foreign Trade Policy. This is the reason for which various export policy measures are being adapted, so that different labor intensive segments can be covered within these, and this in turn, can pave the way for bigger investment.

The policy of Foreign Direct Investment in India is constantly being reviewed, and liberalization measures are also being taken. Changes in different equity caps are also being taken into consideration, and the policy announcements are also being frequently taken into consideration. With regards to all these, it can largely be concluded that irrespective of the ups and downs of the economy, if the policies are constantly being reviewed, it would definitely prove to be a boon for the different investors in India and abroad. This in turn, would surely create a great and a positive impact on the economy, as a whole.

OIFC Organizes the 4th Market place for the Tenth Edition Of Pravasi Bhratiya Divas

OIFC, or the Overseas Indian Facilitation Centre is organizing its 6th Marketplace along with the the 10th Pravasi Bharatiya Divas, starting from 7th to 9th, 2012. The event will be organized at Birla Auditorium, Jaipur, Rajasthan, India. The marketplace in OIFC is basically a premier forum for business networking, and this event is organized for the delegates of PBD, so that they can expand their economic linkages in India. At the same time, there is also an effort on part of the organization to set up business meetings for these delegates with different partners. This is done, so that the requirements of the buyers and the suppliers can be matched.

OIFC organizes this market place event more or less every year. In the previous year, the event was organized from 7th to 9th January at Vigyan Bhawan in New Delhi. The state government partners, medical partners and knowledge partners of OIFC will showcase the services at the pavilion of the OIFC Market Place. In addition to that of interaction, with the delegates, there would also be discussions on the initiatives of the state level for the NRIs. Discussions would also be carried out in the different investment opportunities in India.

It is generally expected that there are huge business opportunities in India. At OIFC, apart from discussing the investment opportunities, efforts would also be made to carry out discussions on the different procedures to set up new business ventures in India. Discussions would be carried out on the issues of NRI banking, investments in the capital markets, and many other different progressive fields. It is therefore, expected that the entire event would come out to be a huge success. The authorities are eager to welcome different delegates, and efforts are also being made, so that the numbers of flights to this place are also increased.

The organizing authorities are also making great efforts in different ways, so that the event can turn out to be a success. In addition to the increase in the numbers of transportation facilities, other facilities to welcome the delegates and extend hands with them are also being facilitated. This is the 10th edition, and would be jointly organized by the Con federation of Indian Industries and Ministry of Overseas Indian Affairs. This is generally organized to mark the brilliant contribution of the community of Indian Overseas in the huge developmental process of India.

The tenth edition of the convention will be inaugurated by the Prime Minister, and the President will deliver the valedictory address on January 9th. Like any other Pravasi Bharatiya Divas, in the forthcoming PBD, there would be discussions related to the issues of health, education, inclusive growth and youth etc. There would also be enthusiastic participation from different Indian communities across the globe. The entire effort for such a program is to have an interactive event that can largely address the issues concerning the overseas Indian community. It is these communities that have largely helped in the transformation of the Indian economies on a massive scale.

October 31, 2011

Growing Economic Standards Leading to Greater investment options in India

The scope for business in India is immense and this has led to more investment options in India, The high population density in the country has given rise to great opportunities in the field of business guarded by a range of developed skill set. Thus India has grown as one of the significant economies in the world having immense potential towards long-term growth. Based on this investment strategies for India can be well formulated.

During the last couple of years the economic growth rate in India was around 7% p.a, before it was hit by situations like credit crunch, recession prevailing round the globe. The growing up economy has attracted bulk of investors to go ahead with investing in India. The growth has been backed by the various industrial sectors to a great extent. The sectors mainly include technology, manufacturing and service industry. The country is yet to grow its economy and the eminent business analysts believe that very soon the country will join the league of the top economies around the world.

One of the major threats for the government of India in going ahead with the growing economy is nothing other than the diversified wealth distribution in the region under which a favourable part of the population enjoy higher income and a luxurious living and at the same time another half of the population just survive on just a few dimes and are highly poverty stricken. Unless this inequality in wealth distribution and the situation of poverty could be eliminated, the economic growth will continue getting struck at the mid level.

The political history of India has continued to remain controversial and difficult for time immortal but it is with the introduction of new economic policies back in the year 1990 , changes in economy could be traced . It is from this time around the free economy policies came into being eliminating the socialist policies and principles of the by gone years. This has even created new investment options in India for overseas Indians and even the domestic investors. Thus a new era in terms of business, economy and investment began in the country.

There are scores of companies across the world having immense exposure to India. Some of them are connected through partnership while the others have full control through the domestic companies. The main consequence to this was getting easy exposure through collective investment strategies, direct equities, exchange traded funds and several others. Although, it is always better to have professional advice along with this at all time. Each of these investment vehicles comes with its own set of risk/reward ratio and in order to undertake the risk one must align the particular risk to their own risk profile, investment strategies and financial needs for future.

As huge potential has been forecasted about the growth of the Indian economy, so it is high time now that India must go ahead towards the fulfilment of its own potential and increase Investing in India from Overseas Indians. As more market will open up for the overseas and domestic investors in India, the economy is gaining more transparency with reduced rate of risk profile.

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