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.
Investment Opportunities in India 