Investment Opportunities in IndiaJuly 2, 2013

Investment opportunities for NRIs in the booming Indian   Economy

Filed under: Investment Opportunities,Investment Options,NRIs Investment in

India — Harjeet @ 12:06 PM 

Tags: bank fixed deposits, business in India, Business Opportunities, FCNR

Account, FDI investments, invest in real estate, Investment Opportunities in

India, investment options for NRIs, non resident Indians, NRE Account, NRI investing

in India, NRIs, NRO accounts, persons of Indian origins, PIO

A stable, prosperous foundation is the primary requirement to grow oneís business

in India. India offers such a foundation. It provides rich business opportunities and

markets to non-resident Indians (NRIs) and persons of Indian origins (PIO) for new

products and services. It is one of the fastest, easiest and lucrative investment

destinations in the world to set up business. India is the second-most profitable

destination, according to UNCTAD’s World Investment Prospects Survey.

To attract foreign investment in India, the Government has offered several facilities

to the NRIs, PIO and overseas corporate bodies (OCBs).

Investment options for NRIs in India

National priority level and state-specific projects are being implemented across the

country. These projects offer huge investment opportunities in India. The

government is in fact, promoting Public Private Partnerships (PPPs) in many projects

opening up new vistas in sectors such as infrastructure, education, healthcare etc.

The health care sector of India has also opened new investment opportunities for

NRIs investing in India because of the rise in disposable income, penetration of

health insurance and rising health related lifestyle challenges across demographics.

The returns from the real estate sector in India have consistently been high and

have even outperformed other investment options. The Government of India has

created many policies and schemes to maximize investment options for NRIs/PIOs

looking to invest in Indian real estate sector.

Some of the most popular investment opportunities available to the NRIs and PIOs

for investments in India are:

Non-Resident (External) Rupee (NRE) Accounts: NRE account may

be in the form of savings, current, recurring or fixed deposit accounts.

Such accounts can be opened only by the non-resident himself and not

through the holder of the power of attorney. The interest rates on NRE

Savings deposits shall be at the rate applicable to domestic savings

deposits.

Non-Resident Ordinary (NRO) Rupee Account: NRO accounts may

be opened / maintained in the form of current, savings, recurring or

fixed deposit accounts. Account should be denominated in Indian

Rupees. Permissible credits to NRO account are transfers from rupee

accounts of non-resident banks.

Bank Fixed Deposits: Bank failures are rare in India so bank fixed

deposits are a very safe way to invest for NRIs investing in India.

You know the rates up front so there is no uncertainty there. Taxes can

eat into your returns though, especially if you are in the high tax

bracket, but even then a fixed deposit (FD) that compounds quarterly

and is done for a long maturity will yield well.

Foreign Currency Non Resident (Bank) Account ñ FCNR (B)

Account: FCNR (B) accounts are only in the form of term deposits of 1

to 5 years. All debits / credits permissible in respect of NRE accounts,

including credit of sale proceeds of FDI investments, are permissible in

FCNR (B) accounts also. Account can be in any freely convertible

currency.

Senior Citizens Savings Scheme (SCSS): It is a new investment

opportunity in India for Senior Citizen. The account may be opened

by an individual, who has attained age of 60 years or above on the date

of opening of the account.

National Savings Certificates (NSC) IX Issue: This is another safe

investment with decent returns. There is no maximum limit for

investment and no tax deduction at source (TDS). Certificates can be

kept as collateral security to get loan from banks.

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Investment options in Indian energy   sector

Filed under: energy sector in India,Foreign investors,Investment

Opportunities,Investment Options — Harjeet @ 12:04 PM 

Tags: energy sector in india, foreign direct investments, Indian energy sector, invest

in India, Investment Opportunities, Investment options in energy

sector, investments in energy sector, investors in India, renewable energy

sources, Union Budget

Energy plays a key factor in determining the economic development of all countries.

The Indian energy sector has witnessed a rapid growth in order to meet the

demands of a developing nation. Areas like resource exploration and exploitation,

capacity additions, and energy sector reforms have been revolutionized.

Energy sector in India comprises of both non-renewable (coal, lignite, petroleum

and natural gas) and renewable energy sources (wind, solar, small hydro, biomass,

cogeneration bagasse etc.).

India has retained its position in top five world wind energy markets in 2012. The

country remained the third largest market for new turbines in 2012 with capacity

addition of 2,441 megawatt (MW), according to World Wind Energy Report 2012.

World’s wind turbine capacity addition grew at 19 per cent to 44,609 MW.

Major investments in Indian energy sector

The investment climate is very positive for investors in India. The power sector has

witnessed a surge of higher investment flows than envisaged. The Ministry of Power

has set a target for adding 76,000 MW of electricity capacity in the 12th Plan (2012-

17) and 93,000 MW in the 13th Plan (2017-22).

Some of the major investments in the Indian energy sector:

National Aluminium Company Ltd (Nalco) has set up its second wind

power plant in Jaisalmer district of Rajasthan with a capacity of 47.6

MW. The Rs 283 crore wind power project is being executed through

Gamesa Wind Turbines Private Ltd

Coal India Ltd (CIL) plans to invest Rs 340 crore to embark on the

second round of exploration at Mozambique coal blocks

Jakson Power Solutions has won two new orders for installing solar

rooftop systems in Bengaluru and Pune. The first order is to set up the

80 kilowatt peak (KWp) solar rooftop unit with a facility of battery back-

up at Karnataka State Disaster Management Centre, Bengaluru, said Mr

Sundeep Gupta, Joint Managing Director, Jakson Power Solutions

Vikram Solar plans to put up a 10 MW power plant at Tamil Nadu (TN)

under the second phase of the state’s solar policy

Mytrah Energy Ltd plans to acquire 59.75 MW of existing operational

wind power assets in Tamil Nadu (TN) and Maharashtra. The company

expects to have a capacity of 370 MW against previously anticipated

334 MW by 2013 wind season

Government Initiatives to promote investments in the energy sector

The Government has initiated several policies to attract investors in India to

invest in the Indian energy sector. To accelerate capacity addition, several policy

initiatives have been undertaken by the Ministry of Power. The National Electricity

Policy (NEP) in fact, stipulates power for all and annual per capita consumption of

electricity to rise to 1,000 units by 2012.

Some of the major investments taken by the Government of India to garner

investments in the energy sector are as follows:

Foreign direct investments (FDI) up to 100 per cent is permitted under

automatic route for projects of electricity generation (except atomic

energy), transmission, distribution and power trading

Under the Union Budget 2013-14, the Government of India has

approved a scheme for the financial restructuring of DISCOMS to

restore the health of the energy sector in India

In a boost to power firms with plans to set up units in Special Economic

Zones (SEZ), the Government has exempted them from the positive net

foreign exchange (NFE) obligation applicable to regular units in such

enclaves

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Investment options in India, one of the most attractive economies in the   world

Filed under: Foreign investors,investment guide,Investment

Opportunities,Investment sectors — Harjeet @ 12:03 PM 

Tags: business investment opportunities, Business Opportunities in India, fdi

equity, FDI Investment, foreign investors, Indian economy, invest in

India,investment guide, investment sectors, non resident Indians, NRIs investment

opportunities, Overseas Indians, P Chidambaram, Qualified Foreign Investors, Union

Budget

The Indian economy continues to grow at a good pace and holds a strong position.

Indiaís economy is amongst the largest in the world on the basis of purchasing

power parity (PPP). It is today one of the most attractive destinations for business

investment opportunities with the available large manpower base, diversified

natural resources and strong macroeconomic fundamentals. During April-January

2012-13, India received foreign direct investments (FDI) worth US$ 30.82 billion

while FDI equity inflows during January 2013 stood at US$ 2.16 billion, according to

latest data released by the Department of Industrial Policy and Promotion (DIPP).

India is the third-most attractive destination for FDI in the world. Indian markets

have significant potential and a favorable regulatory regime for foreign investors,

according to a survey titled World Investment Prospects Survey 2012ñ2014 by

UNCTAD.

“We are keen to see FDI investment to surge in India and to that end, a favourable

business climate will be helpful in going forward. We are encouraged to see there is

a continued path towards fiscal consolidation,” according to Ms Christine Lagarde,

Chief, International Monetary Fund (IMF).

Changes made by the Mr P Chidambaram, Union Minister for Finance, Government

of India, in the Union Budget 2013-14 can greatly benefit high net worth individuals

looking to invest in India, where returns on investments are higher than in any other

market.

Key sectors in India where foreign investors can invest

India has become a trillion dollar economy with a self-sufficient agricultural sector, a

varied industrial base and a well-established financial and services sector. There are

numerous sectors that offer lucrative business opportunities in India. Some of the

key investment sectors are:

Aerospace & Defence

Automotive

Banking

Biotechnology

Information Technology

Insurance

Power

Real Estate

Retail

Telecommunications

Government Initiatives in supporting business investments opportunities in India

In order to enable investors to have the complete benefit of available business

opportunities in India, the Government of India has taken following initiatives:

The Government of India has relaxed in expense ratios for mutual funds

and the prospects of higher FDI limits in insurance sectors could unlock

huge opportunities in these investment sectors.

The Government has allowed Qualified Foreign Investors (QFIs) ó

individuals, groups or associations ó to invest directly in Indian equities

and bond markets.

To encourage the micro, small and medium enterprises (MSMEs), the

Government of Tamil Nadu (TN) has announced a special component

package, which includes creation of an additional land bank for setting

up new industrial estates in the state, increase in subsidy for

machinery purchases and creation of a single window clearance

committee to facilitate speedy approvals for industrial estates, said Ms

J Jayalalithaa, Chief Minister of Tamil Nadu (TN).

Investment facilitation in India

The Ministry of Overseas Indian Affairs in partnership with Confederation of Indian

Industry (CII) has set up an Overseas Indian Facilitation Centre (OIFC) as a not-for-

profit-trust, to facilitate non-resident Indians (NRIs), overseas corporate bodies of

overseas Indians and non-resident Indians who want to invest in India.

In order to ease the process for foreign investors to invest in India, OIFC has

developed an online toolkit – Investment Guide to India. The toolkit serves as a

simple, practical and stage-wise investment guide for the non-resident Indians

wanting to invest in India.

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Investment opportunities in Indian   states

Filed under: Investment Opportunities,investment opportunities in India,Investment

Options,Investment options in India — Harjeet @ 12:00 PM 

Tags: Doing business in India, FDI in Gujarat, FDI in Kerala, invest in Gujarat, invest

in Kerala, investment in India, investment options for NRIs,Investment options in

Indian States, investment sectors, investments in Gujarat, investments in

Kerala, NRIs investment opportunities

India is one of the oldest civilisations in the world with diverse cultural heritage. It is

divided into twenty eight States and seven Union Territories (UT). Each and every

Indian states and UTs has a unique demography, history, language etc. which

provides various investment opportunities. These states/UTs are blessed with large

number of tourist places – beautiful landscapes, wildlife and forests, hills, plateaus,

valleys, monuments, forts, palaces, temples, etc. Tourism is the major source for

investments in Kerala.

States and UTs of India are also gifted with distinct inherent strengths – from

abundant supply of mineral resources and large forest reserves to the availability of

good fertile lands, which are suitable for growing variety of agricultural and

horticultural crops.

Several global majors are present in these States which brings large investments

into the country. These companies/ industries are confined to iron and steel,

cement, textiles, agro-processing, mineral-based industries, drugs and

pharmaceuticals, chemicals, electronics, automobiles, etc. Pharmaceuticals and

automobiles are the major source of investments in Gujarat.

Information technology (IT) is now being recognized as an essential part of the

economy by the various State Governments, thereby attracting new players into the

market. IT revolution is committed to provide good governance that ensures

transparency, reduction in transaction costs, efficiency and citizen centric delivery

of public services. Therefore, the Government is making all efforts to facilitate the

growth of such industries and promote overall development of the economy.

Major investment states of India

Haryana: Due to its strategic location, Haryana has been recognised as a business-

friendly State. Panipat, Rohtak, Gurgaon, Faridabad and Sonepat have a special

potential for accelerated socio-economic development. Land and water are the

important resources of the State, making it an agriculturally rich State. Large

number of food grains and horticultural crops are produced, by using available

irrigation facilities.

Kerala: The State of Kerala constitutes one of the most advanced society of the

country. Its literacy rate is the highest among the Indian States. The State has

several advantageous features – pro-active administrative set up, simple and

transparent procedures for investment, rich natural resource base, educated and

hardworking manpower, including the highest density of science and technology

personnel, etc. The Government has taken several policy measures and incentives

for attracting investments in Kerala.

Punjab: Punjab is a land of numerous opportunities which are embedded in its

advantageous position. These include:

Simple and responsive administrative set-up

Educated and professional work force with abundance of skilled

workers

Strong agricultural and industrial base

Efficient infrastructural set up including transportation,

telecommunication, stable and cheap power

Gujarat: Gujarat is the leading industrialized State of India. It houses a number of

multinational corporations, private sector companies, public sector enterprises and

a large number of medium and small scale units. It is a manufacturing powerhouse

with world-class production capabilities. Textiles, petrochemicals, pharmaceuticals

are some of the few sectors which attracts investment in Gujarat. The State is

also known for its entrepreneurial spirit as well as robust social and physical

infrastructure.

Andhra Pradesh: Andhra Pradesh is the resourceful land of minerals which

includes coal, oil and natural gas, bauxite, limestone, gold, diamonds and much

more. It is an agriculturally-prosperous State, endowed with fertile land, water and

conducive agro-climatic conditions. It is among the largest producers of food grains,

fruits, vegetables, cotton, maize, dairy and poultry products in the country.

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June 3, 2013

India: An attractive destination for NRIs to   invest

Filed under: Investment Consultants,Investment Opportunities,Investment

Options — Harjeet @ 4:50 PM 

Tags: Fixed deposit schemes, foreign investors, Indian economy, Indian investment

market, investing in India, Investment Consultants, Investment

Opportunities, investment options for NRIs, investment options in india, long-term

investments, low risk investments, Public Provident Funds,Purchasing Power

Parity, Savings bank account, short-term investments

India’s economy is amongst the largest in the world on the basis of purchasing

power parity (PPP). It is today one of the most attractive destinations for investment

opportunities with the available large manpower base, diversified natural resources

and strong macroeconomic fundamentals.

The Indian investment market offers a plethora of investment avenues. However

the asset class that an investor chooses has to primarily do with the risk appetite of

the investor. Every investor looks for a certain element of safety before investing —

a kind of assurance that even in the case of unfortunate market events s/he at least

gets back the capital invested.

A higher level of safety comes with a ‘cost’: investors will have to compromise on

the returns front, as one cannot expect higher safety with higher returns.

Returns offered by low risk investments will be low to moderate i.e. up to 9 per cent

and in some cases the post-tax returns would be even lesser. It would hence be

ideal if an investor can have a mix of asset classes with varying degrees of risk, to

address safety and returns.

Investment options in India for NRIs

If you’re thinking about investing in India to make money especially into real estate,

you need to first determine your financial goals. Do you need to make money

quickly, invest for your children’s college fund, or build wealth for your retirement?

Once you determine your financial goals, you need investment consultants who

helps investors with their long-term investment planning.

A consultant, unlike a broker, does more in-depth work on formulating clients’

investment strategies, helping them fulfill their needs and goals. The idea behind a

consultant is that they be part of the client’s investment strategy for a long period

of time. The investment consultant job is to actively monitor the client’s

investments and continue to work with the client as goals change over time.

Some of the major investment options for NRIs are:

Short-term avenues

Savings bank account: This is the primary savings product that

anyone would have; however it provides low returns of 4 to 5 per cent.

Any funds in this account makes sense only if the balance is sufficient

to cover needs that are supposed to arise within a month as it offers

highest liquidity.

Fixed deposit schemes (Bank FD): Bank FD comes with a fixed

tenure of investment which acts like a lock in period. While early

withdrawal is possible it entails a ‘penalty’. It is essential to ‘plan’ this

investment since it comes with a fixed tenure/lock in.

Long-term avenues

Post office savings schemes: This is one of the favourite and most

sought after among investors who believe in regular savings in the

form of recurring deposits. There are other investment

opportunities like National Savings Certificate, PO time deposit which

are similar to FD and also offer tax benefit u/s 80 C if the tenure is 5

years.

Public Provident Funds (PPF): PPF offers multiple benefits of good

returns @ 8.8 per cent, low risk, tax free interest and tax benefit u/s 80

C. However liquidity in this avenue is low, as one can start withdrawing

only from the seventh financial year onwards and has to adhere to

certain limitations while withdrawing.

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Growth of tourism in   India

Filed under: Business in India,Indian service industry,invest in India,Tourism in

India — Harjeet @ 4:49 PM 

Tags: FEEs, Foreign Exchange Earnings, foreign tourist arrivals, FTAs, Indian

economy, Indian hospitality sector, Indian service industry, invest in service

industry, investing in tourism, investment strategies, Tourism in India

Tourism refers to the activity of visitors. A visitor is a traveler taking a trip to a main

destination outside his/her usual environment for less than a year, for any main

purpose (business, leisure or other personal purpose) other than to be employed by

a resident entity in the country or place visited, according to UN World Tourism

Organisation (UNWTO).

Tourism is an important social and economic phenomenon in many countries. It is a

key driver of socio-economic progress through the creation of jobs and enterprises,

infrastructure development and the export revenues earned.

Indian tourism industry

Compared to many countries, Indian service industry has the advantages of

possessing a rich and diverse range of unique tangible and intangible cultural,

natural and man-made tourism resources, many of which are world class in quality.

India’s great competitive strength from tourism point of view is its ancient and yet

living civilization that gave rise to four of the world’s great religions and

philosophies, and brought travelers and trade millennia ago. The rich natural and

rural landscape of India is punctuated with the built heritage of its ancient past and

modern structures. India’s contacts with other civilisations is reflected in the rich

cultural diversity of its people through its languages, cuisine, traditions, customs,

music, dance, religions practices and festivals, its holistic healing traditions, art and

craft.

Overview of Indian tourism sector

Today, tourism is the most vibrant among the Indian service industry and has a

strong hold on the economy. The sector contributes 6.23 per cent to the national

gross domestic product (GDP) and 8.78 per cent of the total employment in India.

Moreover, India stands 42nd in the world rankings in terms of foreign tourist arrivals

(FTAs) in the country, according to a report titled ‘Competitiveness of Tourism

Sector in India with Selected Other Countries of the World’ by Ministry of Tourism.

The World Travel and Tourism Council (WTTC) named India as one of the fastest

growing tourism industries for the next 10 to 15 years.

FTAs have shown a growth of 2.8 per cent in March 2013 over March 2012 while the

growth rate in Foreign Exchange Earnings (FEEs) from tourism in India stood at 21

per cent over the same period.

The Visa on Arrival (VoA) Scheme of the Government of India has registered a

growth of 63 per cent during March 2013. A total number of 2,107 VoAs were issued

last month as compared to 1,287 VoAs issued in March 2012.

Investment options in Indian tourism industry

Strong growth in per capita income in the country is driving tourism in India. A

shift in demographics with rising young population (coupled with changing

lifestyles) is leading to greater expenditure on leisure services. The tourism policy of

Government of India aims at speedy implementation of tourism projects,

development of integrated tourism circuits, special capacity building in the

hospitality sector and new marketing strategies.

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May 16, 2013

Business Incubation in   India

Filed under: Business in India,Business Opportunities,NRIs,overseas Indian

investors.,overseas investors — Harjeet @ 3:51 PM 

Tags: business incubation centers in India, Business Incubation in India, Business

Opportunities, Business opportunities for NRIs, Indian economy,Invest in Indian

Markets, investing in India, Investment Opportunities, investment sectors, non

resident Indians, NRIs investment opportunities, NRIs opportunities, overseas

foreign investors, Overseas Indians

Indian market today is reshaping the world’s economy. India’s gross domestic

product (GDP) has crossed the trillion dollar mark in 2007 and is currently in 4th

position (PPP) after US, China and Japan. Investment in almost every sector

(Education, Food, Energy, Health Care and Retail) of the Indian economy has a

promise of high returns that has caught the attention of investors and businesses

across the world.

India offers a stable, prosperous foundation to grow one’s business. It offers rich

business opportunities and markets to non-resident Indians (NRIs) for new products

and services. It is one of the fastest, easiest and lucrative investment destinations

in the world to set up business. India is the second-most profitable destination,

according to UNCTAD’s World Investment Prospects Survey 2010-2012.

Business Incubation in India

Business incubation is a dynamic process of business development. Business

incubators are programs designed to accelerate the successful development of

entrepreneurial companies through an array of business support resources and

services, developed and orchestrated by incubator management and offered both in

the incubator and through its network of contacts. Successful completion of a

business incubation program increases the likelihood that a start-up company will

stay in business for the long term.

Incubators usually also offer companies rental space with flexible leases, shared

basic office services and access to equipment all under one roof.

Overseas Indians who wish to enter a business incubation program must apply for

admission. Acceptance criteria vary from program to program, but in general only

those with feasible business ideas and a workable business plan are admitted.

Startup Incubation Centers in India

Startup Incubation holds significant importance in a country like India where

entrepreneurs by the score are launching new setups and changing the game of

business by minutes. For the uninitiated, business incubation programs or centers

provide support functions, mentorship and resources to individual entrepreneurs or

entrepreneurial setups. This enables them to get all the expert advice and technical

guidance that they need to survive for a longer time, unlike most other

entrepreneurial ventures that fizzle out within a few months of their launch.

Almost every other prestigious B-school today houses an incubation center so

that business opportunities can be nurtured from their very source. Currently

there are about 100 incubation centers supported by the Indian STEP and Business

Incubator Association (ISBA) which is the apex Indian professional body supporting

business incubators. Private incubators are a handful, but gradually growing. These

numbers are expected to double within the next two years. Some of the good

business incubation centers in India:

Centre for Innovation, Incubation and Entrepreneurship (CIIE), IIM

Ahmedabad

AngelPrime

Indian Angel Network (IAN)

Technopark Technology Business Incubator (T-TBI)

Long term projects are projects of national importance that will help in India’s

development. These platform showcase investment opportunities in projects that

require funding and will also help you to contact relevant institutions undertaking

the projects. This information will be updated regularly to generate fresh

investment opportunities for the overseas Indians.

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Attractive investment opportunities for NRIs in   India

Filed under: Business in India,Business Opportunities,FDI — Harjeet @ 3:49 PM 

Tags: ARCs, asset reconstruction companies, business in India, Business

Opportunities in India, Direct Investment, Education in India, Foreign direct

investment, foreign investors, Indian automobile industry, Indian automotive

sector, Indian tourism industry, investing in India, Investment

Opportunities, investment opportunities for NRIs, NBFCs, non-banking financial

institutions

“India is clearly becoming a more and more important player on the world stage in

G20 context, in terms of its role in the global economy. It is very useful for us to

exchange ideas and build the basis for future collaboration,” according to Mr Ben

Bernanke, Chairman, US Federal Reserve.

India is the fifth best country in the world for dynamic growing businesses,

according to the Grant Thornton Global Dynamism Index. The index gives a

reflection of how suitable an environment it offers for dynamic businesses.

In addition, India’s economic confidence registered an increase of 8 points, to reach

68 per cent in August 2012 as compared to the previous month, according to the

‘Ipsos Economic Pulse of the World’ survey. This makes India the fourth most

economically confident country in the world.

India is also expected to be the second largest manufacturing country in the next

five years, followed by Brazil as the third ranked country, as per Deloitte Touche

Tohmatsu Ltd (Deloitte).

The Government of India has relaxed foreign direct investment (FDI) regime in

sectors including multi-brand retail, single-brand retail, commodity exchanges,

power exchanges, broadcasting, non-banking financial institutions (NBFCs) and

asset reconstruction companies (ARCs) in 2012 to attract more and more direct

investments.

Business Opportunities in India

Mr Mahmood Al Hashemi, Director General of Ajman Free Zone Authority (AFZA),

UAE will tour India and address a series of seminars and press conferences in

Mumbai, Delhi and Ahmedabad this month. This high profile visit to the Indian sub-

continent will be to initiate and build a long and lucrative means of economic

cooperation between the two countries.

This will provide huge opportunity to young entrepreneurs doing business in India.

Here’s a list of 5 good opportunities non-resident Indians (NRIs) can look at:

Software: India’s software and services exports are likely to rise with

export revenue growth projected at 13 to 15 per cent. With one of the

largest pool of software engineers, NRIs can set higher targets in

hardware and software development

Tourism: Tourism is a booming industry in India. With the number of

domestic and international tourists rising every year, this is one hot

sector NRIs must focus on. India with its diverse culture and rich

heritage has a lot to offer to foreign tourists. Beaches, hill stations,

heritage sites, wildlife and rural life, India has everything tourists are

looking for

Automobile: India is now a hot spot for automobiles and auto-

components. A cost-effective hub for auto components sourcing for

global auto makers, the automotive sector is potential business in

India for foreign investors

Textiles: India is famous for its textiles. Each state has its unique style

in terms of apparels. India can grow as a preferred location for

manufacturing textiles taking into account the huge demand for

garments. Places like Tirupur and Ludhiana are now export hubs for

textiles. A better understanding of the markets and customers’ needs

can boost growth in this sector and attract direct investments

Education and Training: There is a good demand for education and

online tutorial services. With good facilities at competitive rates, India

can attract more students from abroad. Unique teaching methods,

educational portals and tools can be used effectively to make the

sector useful and interesting

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May 3, 2013

Scenario of pharmaceutical market in   India

Filed under: invest in India,Investing in India,pharmaceutical industry in India —

Harjeet @ 10:01 AM 

Tags: FDI policies, Foreign direct investment, healthcare sector, Indian pharma

sector, investing in India, Investment Opportunities, investment options in Indian

healthcare, opportunities in Indian Healthcare, Overseas investors, pharma sector in

India, pharmaceutical industry in India,pharmaceutical sector in India

The pharmaceutical industry in India is most progressive and advanced among all

the developed and developing countries. The industry has provided great

employment opportunities to thousands of people, apart from contributing greatly

towards the Indian economy.

Today, India is among the top five pharmaceutical emerging markets in the world.

The market is expected to grow at a compound annual growth rate (CAGR) of 14-17

per cent over 2012-16. The total revenues of the market stood at US$ 11 billion and

are estimated to be US$ 74 billion by 2020.

Growth in the sector

Pharma sector in India is growing at a rapid pace, marked by a number

of mergers and acquisitions (M&A) and growth in foreign expenditure.

The sector is going to be a major area of focus in the coming years as

Indian medicines are increasingly becoming popular in many parts of

the world because of the cost effectiveness and easy availability. The

manufacturing cost of Indian pharma companies is up to 65 per cent

lower than that of US firms and almost half of that of the European

manufacturers.

The domestic pharmaceutical market is expected to register a strong

double-digit growth of 13-14 per cent in 2013 on back of increasing

sales of generic medicines, continued growth in chronic therapies and a

greater penetration in rural markets.

The growth of healthcare sector also provides huge opportunities

for investing in India’s pharma space. The growing network of private

and public hospitals in the country generates a huge demand for

industrial cleaning equipment, waste management, hygiene products

and laundry solutions.

Pharmaceutical exports

The Ministry of Commerce has targeted Indian pharma sector exports of US$ 25

billion by 2014 at an annual growth rate of 25 per cent.

Last year, the industry registered exports of US$ 13 billion at a growth rate of 30

per cent, as per Dr P.V. Appaji, Director-General, Pharmaceutical Exports Council of

India (Pharmexcil). The Government has also planned a ‘Pharma India’ brand

promotion action plan spanning over a three-year period to give an impetus to

generic exports.

FDI inflows

The cumulative drugs and pharmaceuticals industry in India attracted foreign

direct investment (FDI) inflows worth US$ 10,308.75 million during April 2000 to

February 2013, according to the Department of Industrial Policy and Promotion

(DIPP)

Recent initiatives

The Department of Pharmaceuticals has prepared a ‘Pharma Vision 2020′ document

for making India one of the leading destinations for end-to-end drug discovery and

innovation and for that purpose, the department provides requisite support by way

of world class infrastructure, internationally competitive scientific manpower for

pharma research and development (R&D), venture fund for research in the public

and private domain and such other measures.

Pharmexcil has removed the need for overseas investors to get a no-objection from

their joint venture (JV) partner before venturing out on their own or roping in

another local firm. This will promote the competitiveness of India as an investment

destination and be instrumental in attracting higher levels of FDI and technology

inflows into the country.

FDI policies

FDI, up to 100 per cent, under the automatic route, is permitted for

green field investments (when a company establishes a subsidiary in a

new country and starts its own production) in pharmaceutical sector in

India

FDI, up to 100 per cent, under the government approval route, is

permitted for brown field investments (when company purchases an

existing plant or firm, rather than construction of a new plant)

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Investment options in Indian education   sector

Filed under: education sector in india,invest in education — Harjeet @ 9:56 AM 

Tags: economic growth, Education in India, Education sector in India, Foreign direct

investment, Indian economy, Indian Education Industry, Indian education

sector, invest in India, Investment in education in India, Investment

Opportunities, Investment Opportunities in Indian Education Sector,NRIs Invest in

Indian Education, NRIs Investment, NRIs investment options

Education is the vital key for modernization. The importance of education can be

realized from the fact that all modernized societies are emphasizing on

universalization of education as a mode for sustained economic development. There

is a huge demand for upgradation of education sector in India, as the country is

expected to have a surplus of 47 million people in the working age group by 2020.

The consumption trends predict that an urban India is spending nine per cent of his

wallet on education while the rural consumer spends only six per cent.

Education in India

In the past few years Indian education sector has witnessed a series of changes,

which resulted in a significant increase in market share of the education industry.

With economic growth and enhanced technology it has become necessary to

develop the Indian education sector. Funds are a major concern in the market to

meet this demand. The Government of India has taken many initiatives to attract

investments from non-resident Indians (NRIs) for the development of education

infrastructure. The Government has also opened the doors for foreign universities

by passing Foreign Educational Institution (Regulation of Entry and Operation) Bill,

which will help in bringing foreign investments in education in India and shaping the

education industry structure specially pertaining to higher education.

Growth drivers of Indian education sector

Demographic advantage

o As per Census 2011, 35.3 per cent of the Indian population is

under the age of 14

Increasing awareness

o Increase in awareness towards education as a priority and

essential tool for career growth

o Increase in job opportunities and salaries offered

making investment in education in India prudent

Human Resource driven economy

o Increase in the demand for an educated skilled workforce by

services sector

o Share of service sector in GDP increased from 30% in 1950 to

55% in 2007

Technology aided delivery

o Increase in penetration of technology resulting in virtual learning

and education delivery

New employment avenues

o Newer employment avenues such as knowledge process

outsourcing (KPO), legal process outsourcing (LPO), retail,

aviation, animation etc. demanding highly skilled manpower

Investment opportunities in Indian education sector

Education sector in India is also considered as one of the major areas for

investments, as the entire education system is going through a process of

renovation, according to a report ‘Emerging Opportunities for Private and Foreign

Participants in Higher Education’ by PricewaterhouseCoopers (PwC).

The Government of India has allowed foreign direct Investment (FDI) up to 100 per

cent through the automatic route in the education sector.

According to the ‘Indian Higher Education – Real Estate’s New Emerging Sector’, a

study by real estate consulting firm, DTZ, the Indian higher education sector needs

5,550 million sq ft of additional educational space (excluding support services like

hostel, cafeteria, recreational facilities) to meet the Government of India’s 30 per

cent Gross Enrollment Ratio (GER) in higher education target by 2020.

The sky rocketing economic growth will require huge number of engineers and

management graduates which mandate infrastructural development to address the

demand. Entry of foreign universities would not only intensify the competition, but

also provide an international platform to the Indian students where they can

achieve quality learning.