There is enormous investment potential in areas such as biotechnology, retail, real estate, roads and highways, power, telecommunications, certain economic zones and healthcare among others.
These investments are sought after because India has a large supply of skilled and competitive workforce, a large research and development basis, favorable policies and the natural resources required to set up industries etc.
Other reasons that prove that the Indian market is one of the markets that have done relatively well during the crisis:
- India is the world's largest democracy.
- Large selection of young skilled workers, cost-effective production and a large domestic market.
- Gradual opening of the economy for foreign direct investment.
- Liberal policy on technology collaboration.
- Accelerating the privatization process and restructuring of state enterprises.
- Good network of research and development.
- Economic and political stability.
The Indian government has committed itself in its efforts to maintain a healthy growth and a favorable climate for businesses, both public and private, and to invest and expand its activities in the country. Today, FDI is permitted in almost all sectors.
During the period April 2008 - January 2009 foreign direct investment was valued at USD 23.88 billion compared with USD 14.46 billion during the same period last year (April 2007 - January 2008). This shows an increase of just over 60 percent.
The countries that top the list in terms of foreign direct investment during April 2008 - January 2009 are Mauritius, Singapore, USA, UK, Netherlands, Japan, Germany, Cyprus, France and the United Arab Emirates.
Cecilia Helland