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.