Investment Opportunities in India

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.

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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 4, 2011

Investment: Destination India

India is a country with huge manpower that is equipped with enormous skills and this is one reason for investing in India and evident in the growing number of foreign companies and overseas investors. Despite this and the fact that Indian economy belongs to one of the most conspicuous economies around the world, there has been a sharp fall in economic growth that was earlier projected to grow rapidly at least in the long run. The performance or behavior of the Indian economy has particularly fallen in the short to medium term.

During the period of last five years that refers to the time exactly before the recession and the global financial crisis the economic growth was around seven percent on a yearly basis. Due to this strong and impressive growth, investing in India seemed to be a favorable prospect for the overseas companies and we have witnessed the arrival of several foreign companies in this country. The IT and service sector industries have provided an impetus to the economic growth and according to the financial analysts, within a very short time India will join the frontrunner and powerful economies of the world.

During the passage of time, foreign direct investment has emerged as one of the most significant and inalienable aspect of the Indian residents who are settled in foreign countries or NRI’s. On the basis of a survey called World Investment Prospects Survey conducted for 2010 to 2012, India is also one of the most preferred destinations of foreign direct investment. This survey was conducted by United Nations Conference on Trade and Development. In addition to this, another survey conducted by one of the big four firms Ernst and Young, the country has ranked fourth as far as foreign investing is concerned and it is referred to as European Attractiveness Survey.

The growth of foreign investment in India has increased three folds with a variety of business prospects and potential that is available in this country. However, at the same time, there is an increased need for a guideline on strategic investments so that the foreign investors keep pouring in. In other words, to have a better orientation of foreign investments and to maintain the flow of foreign investors, it is possible to get the expert’s guidance in the Government website that is referred to as OIFC.

According to the opinion of several people, the success of India with foreign investments and economic growth has been showing all along though the journey was not always pleasant as there has been an equal amount of delay during this process. Whether the high growth forecasts for the economy helps to provide a boost to the Indian economy or otherwise cannot be predicted immediately. With the country has opening doors to the foreign and domestic investors, the risks of investing in a developing economy should be reduced to a large extent.

Know more about Foreign Direct Investment in India

In layman’s words, foreign direct investment refers to the situation when a particular company or an individual belonging to one country invests in another country. The investment which is done could be a physical one like construction of a factory, land purchase, mining activities, etc.

Apart from the above mentioned types of foreign direct investment, joint-ventures as well as reciprocal-trade agreements are the other investment options to which one can resort to. In a joint venture, there are basically two or more than two organizations which handle the financial and the management of the investment made in foreign country whereas in the reciprocal- trade agreement, the two companies which make the same type of products reach on an agreement to proceed further as the distributor of each other at their own home country. Licensing a company to produce products in some other foreign county is also a form of investment falling under the category of FDI.

When any company makes a foreign direct investment for its expansions in another country, then it is termed as the horizontal foreign direct investment. On the other hand, when the companies make investments for increasing its sales and for the growth in business, then it is termed as vertical foreign direct investment. Vertical FDI occurs usually when any company assumes the role of a distributor or a supplier for any type of finished goods. This again can be divided into forward and backward vertical FDI.

When the company takes the role of a supplier then it is referred to as the backward vertical FDI and when the company acts as a distributor of the products is any other country is referred to as forward FDI.

The company is always benefited by the FDI’s as it enhances the reputation of the company by creating more job opportunities. Moreover the costs of the final goods which are produced are also less as the cost of import is not there. Foreign direct investment aids in increasing the levels of production and also in lowering the cost of production.

When a company thinks of investment options, especially that of FDI, then it needs to contemplate of various factors for accessing the foreign markets. It needs to make a stock of the domestic resources so that it has sufficient human resource as well as the financial stability for carrying on with the new undertaking. Apart from this, it also needs to check whether the potentiality of the market for the product it is going to launch. A thorough market study is essential before making a FDI decision. The competition that exists in the market and the consumer behavior are the other factors which need consideration if one is thinking of foreign direct investment.

Both the developed countries as well as the developing countries are able to attract foreign investment in various ways today. For e.g. it has been seen that few countries provide loans at a very low interest rates which makes most of the individuals living outside, in other countries avail the loan options in those countries.

September 21, 2011

FDI: The current trend of investments

When we discuss on FDI, it is very essential that one is able to make a clear demarcation between the FDI flow as well as the FDI stock. The former refers to the amount of the foreign direct investment which has been undertaken across the period (which normally is taken as one year) whereas the stock of FDI implies the total built up value of the foreign assets which are owned for a given period of time.

It has been seen that there has been a significant increase in the investment opportunities in the FDI domain during the years 1990 to 2000s. This increased growth rate is due to the political stability as well as the other economic factors present within the developing countries. Further it has also been seen that with the advent of globalization, the economy of the world has made organizations invest across the globe to have the presence felt in almost all the regions of the world. The increase in the inflows which the county of US has been seeing is another shocking but a significant trend where the inflows have increased but on the other hand its counterpart, the US –FDI –abroad has not gone that high. Once can conclude the growth if the US inflows to be high due to the lucrative US markets and also due to the falling dollar value which has been seen in the recent past.

FDI also have several benefits like rapid approvals for the investments, concessions in taxes, better liberalized environment for operating, subsidies on loans, grants, etc are few of them. The country (i.e. the host) also gains benefits due to the FDI’s in the increased job opportunities, better living standards, enhanced economic growth, etc. Hence FDI’s are always beneficial for both the host country as well as for the foreign investor.

Governments have also devised many policies for attracting the FDI’s as these funds can be used for national development projects and strategies. Governments also provide various types of tax benefits to the investors so that higher amounts of investments are made by the foreigners. The basic strategy of the government is to make the FDI investment all the more lucrative for the investors to increase investment opportunities. The common ones which are implemented by the government is to provide tax benefits as well as reduced interest rates on loans which have till date run successfully.

The developing countries have now become hot attractive spots for the FDI’s due to the better political stability and economic factors. Countries like India have accumulated a lot in the form of FDI from the other foreign countries as the economic and political stability of the country of India gives an ease to the investor to invest without much contemplation. We have seen how the FDI amount varies and increases in the Indian market when the stock market face jolts and jerks.

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