India, your next investment destination

Over the last decade, India has emerged as one of the foremost FDI destinations in the world. With FDI equity inflows touching nearly US$ 40 billion in calendar 2015 recording an impressive growth of 37% over 2014 (FDI provisional statistics as per FIPB website), India has outpaced all other economies, moving up to the premier position from being in fifth spot during the corresponding period of the previous year. (EY’s India attractiveness survey 2015).

The Indian economy is expected to grow at 7.5% in 2016 and 2017, well above the expected world average of 3.6% as per the IMF (World Economic Outlook Update Jan 2016).

The pro-business Government and its economic development oriented policies are proof of India’s drive to facilitate the business environment and to promote investments. The governement has launched various flagship programs like Make in India, Skill India and Start-up India.

The large and growing population, 50% of which are in the working age group, give rise to a rapidly growing middle class, an aspirational group of people that enter the market place not only for goods but also for services, both profesional and leisure oriented. This youthful and growing population also generates a large and diversified pool of manpower resources to support the expected industrial growth.

Stable macro-economic fundamentals with inflation under control, rising forex reserves and declining interest rates make India a fertile ground for foreign investment. With most sectors under the automatic route or others open for 74-100% foreign direct investment, India provides a liberal regime for foreign businesses to set up shop in India.

It is estimated that India needs nearly US$ 1 trillion to boost economic growth and for investment in infrastructure and other sectors which indicates the tremendous potential for foreign investors.