Emerging Invetment Destination - India

India is amongst the fastest growing free-market economies and has been on a growth trajectory of over 8 per cent year-on-year for five years in a row. This impressive performance has attracted global investors.

According to 'Global Corporate Capital flows 2008-09 to 2013-14' study by KPMG, 18 percent of global companies surveyed want to invest in India in next five years. Figures are up by 8% for India (7% for China and Russia) from the number of companies that are planning to invest in 2008-09. United States will witness the biggest fall in its share in global investment as only 24 percent of the companies are planning to invest in 2013-14 as against 28 percent in 2008-09.

According to same survey, India is likely to witness the largest growth in foreign capital inflows in the next five years, but it is China that will corner the biggest chunk of corporate investment by 2013-14, moving ahead of even the US.

By 2010, while western countries would be faced with a manpower shortage, India would add the maximum number of people in the working age group and would hold centre stage in terms of manpower supply.

Indian economy has created favourable investment climate and positive demographic factors and opened up several opportunities for business.
- Foreign auto makers, including Ford Motor, General Motors, Honda Motor, Toyota Motor, Daimler, Hyundai and Renault are all looking at increasing their presence in India and use it as an export hub (as it becomes cheaper for foreign companies to source auto components from India).

- Domestic leader, Tata Motors is expanding its presence across the globe, recently it has received overwhelming response across and continues to receive proposals for marketing as well as setting up of plant for Nano oversees, but company might mull upon the licensing route for mass manufacturing the Nano overseas. In the process existing auto-component makers of Nano might be benefited, since it will be cost competitive for any of the manufacturer to source auto components for Nano from India.

M&A activities, both by Indian companies abroad and by foreign companies into India are there in news on regular basis. Business environment are expected to bring about better synergies as Indian companies mark their footprint across the world.

India has seen unprecedented capital inflows in the form of FDI and FII funds as a result Indian economy has seen a steep increase in GDP growth and surge in exports. Despite a huge oil import bill, India’s foreign exchange reserves have swelled to $290 billion from around $50 billion in 2000.