Investing in India

India: A Favourable Investment Proposition

India has in recent times, been rated as the third most preferred investment destination
globally. Liberalised reforms in foreign direct investment, both through direct automatic
and approval routes, and release of the revised and FDI policy has eased and expedited
the investment process in India. Other factors that work in favour of India are its
demographics, a suitable business cimate, lower costs in terms of labour and availability
of high-grade talent pool.

As per the advance estimates of GDP for 2009-10 released by the Central Statistical
Organisation (CSO), the economy is expected to grow at 7.2 per cent in 2009-10, with the
industrial and the service sectors growing at 8.2 and 8.7 per cent, respectively, while the
Prime Minister on an encouraging note, has said that growth at about 9 per cent could be
expected in this fiscal. India's gross domestic product (GDP) grew by 6 per cent during
October to December 2009, over the corresponding quarter of the previous year, as per
data released by the CSO.

Six core infrastructure industries grew at 4.5 per cent in February 2010 against 1.9 per
cent during the corresponding month last year, primarily due to increased output in
electricity.
Foreign institutional investors (FIIs) were net investors of US$ 4.37 billion in equity
and US$ 2.09 billion in debt instruments in the month of March 2010, according to the
data released by Securities and Exchange Board of India (SEBI). The number of
registered FIIs was 1713 as on March 31, 2010 and the total FII inflow in equity during
January to March 2010 was US$ 4.54 billion while it was US$ 4.71 billion in debt.

As on March 26, 2010, India's foreign exchange reserves totaled US$ 277.04 billion, an
increase of US$ 24.71 billion over the same period last year, according to the Reserve
Bank of India's Weekly Statistical Supplement.

Moreover, India has received FDI worth US$ 24.68 billion during the period April 2009
to Febuary 2010, while FDI inflow into India in Febuary 2010 alone was US$ 1.72
billion, according to the Department of Industrial Policy and Promotion. The six
infrastructure sectors—crude, petroleum refinery products, coal, electricity, cement and
finished steel—that constitute 26.68 per cent in IIP, recorded a growth of 5.3 per cent in
the period April-February 2009-10, as against 2.9 per cent in the same period last year.

Of the more than 200 companies from over 50 countries that form part of the World
Economic Forum's Global Growth Companies (GGC) Community, India today has the
second largest representation, with a total of 18 GGCs. Indian GGCs come from every
sector, with a strong representation in information technology and electronics, retail,
consumer goods and banking.
Policy Framework
Various nodal agencies such as Departments and Ministries of the government, the
Reserve Bank of India (RBI) and the Securities Exchange Board of India are involved in
the policy making for various investment related issues in sectors. Significantly, the
government recently released the revised compendium document of foreign direct
investment (Consolidated FDI Policy).

Types of Investment Opportunities available

Several national priority level and state-specific projects are being implemented across
the country. These offer lot of potential for investors willing to invest in India. The
government is in fact, promoting public private partnerships in many projects opening up
new vistas in sectors such as infrastructure, education, healthcare etc.

Keywords
Investment opportunities,India,FDI policy