INVESTMENT IN INDIA
Investment in India is one of the fastest-growing economies in the world. As one of the leading nations, the country has sustained a recent global downturn, thus emerging in terms of GDP growth rate and FDI inflows
The country is growing consistently with a higher rates of (>7%). Till 2020, it has retain its position as one of the fastest growing economies (Source: International Monetary Fund)
In recent years, India has emerged as one of the most attractive destinations. Both, in terms of investments and for doing business. Evident by its significant jump in Ease of Doing Business rankings. (Source: Ease of Doing Business, World Bank)
Now India is one of the most preferred investment destinations
Presently, Investment in India ranks amongst the top 10 FDI destinations globally – surpassing USD 50 billion. In the same way, before Make in India initiative, a growth of 46% in FDI equity inflow and 37% in overall FDI inflow have been launched. (Source: Ministry of Commerce, Government of India)
A Huge Domestic Market-India
India offers a huge domestic market, coupled with increasing per capita income; increasing consumption levels, a huge untapped market for global products, with a population of 130 million people.
The proportion of the working-age population in India is likely to reach more than 64% by 2021, with a large number of young persons age group 20-35 (Source: Economic Survey 2014)
However, the average age of 125 billion persons will be 29 years by 2020 (Source: Economic Survey, 2014)
If India continues its recent growth trend, average household incomes will triple over the next two decades. Thus, it will become the world’s fifth-largest consumer economy by the year 2025 (Source: The Bird of Gold, McKinsey Report)
Recently, India is expected to be the largest supplier of university graduates in the world by 2020. (Source: Morgan Stanley Research)
Our country offers a huge talent pool of educated and qualified youth for all streams of business operations.
Nation offers a huge workforce with the lowest labor rates. Hence it, enables manufacturers to achieve economies of scale.
Currently we are having 712 university-level institutions, 36,671 colleges. Other than that, country is having 11,445 standalone institutions (Source: Educational Statistics at a Glance 2014, Ministry of Human Resources Development)
Withing the ASIAN Region, India has the lowest Corporate Tax. Thus, providing edge to global competitiveness.
Though, in a number of sectors, major FDI policy reforms have been made, such as defense, construction development, pensions. Many other fields like broadcasting, pharmaceutical, and civil aviation are too covered under FDI policy reforms.
As a result, foreign investors are able to invest in India. Either on their own or as a joint venture, as may be required in a few sectors
Barring a few reserved sectors, 100% FDI is allowed through the automatic route in several sectors. Without the need for government approval. Such as Automobile, Food Processing, etc.
Some of the emerging and established markets such as Middle-East and Southeast Asian countries are closely located. It has excellent air connectivity across all parts of the world.
The continent is surrounded by the Bay of Bengal, the Arabian Sea, and the Indian Ocean. An arrangement that facilitates most of its overseas trade in all main directions.
We offer excellent infrastructure in place and latest infrastructure is being added vide government-backed projects like Sagarmala – modernization of ports, setting up of coastal economic zones, state of the art major ports and fish harbors. Bharatmala Pariyojana – Development of about 7000 km of national highways; Dedicated freight corridor; Development of smart clusters, including logistics parks, manufacturing hubs along the dedicated freight corridor.
At a rapid pace, India has at par digital connectivity infrastructure in place. Union Government initiated reforms that have ignited the process of evolving India into a Digital Economy, with digital transactions increasing leaps and bounds.
The world’s largest democracy – India is a Sovereign Socialist Secular Democratic Republic with a Parliamentary form of government, which is federal in structure with unitary features.
The Reserve Bank of India (RBI)
Despite the global economic scenario, The Reserve Bank of India (RBI) has played a critical role in maintaining economic stability in India. The focus on containing inflation and ensuring that interest rate cuts are passed on by banks is a revolutionary step and structural reform in itself. RBI has been increasing access to foreign exchange reserves, and moderating periods of extreme volatility in the currency through exchange intervention.
Securities Exchange Board of India (SEBI)
Securities Exchange Board of India (SEBI) has been the regulator of Indian markets since it was granted legal status in 1992. Among other functions, one of SEBI’s prime objectives is ensuring the rights and safety of investors. India achieved a rank of 8 in World Bank’s Ease of Doing Business Ranking – protecting minority investors, highlighting the efficiency of the organization.
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