Investment in India

Improved Banking Services for NRIs in India

India economy is the fifth best 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 terms of purchasing power parity (PPP) it is expected to become world’s third largest economy by 2050, according to a recent report titled, 'World in 2050 The BRICs and Beyond: Prospects, Challenges and Opportunities' by PricewaterhouseCoopers (PwC). It is one of the most attractive destinations for business investments for non-resident Indians (NRIs) and overseas Indians. It is a land of large manpower base, diversified natural resources and strong macroeconomic fundamentals.

The robust financial system boasts the economy of India. It is essential for economic growth and development. The financial services sector in India includes banking sector, capital markets, insurance sector, private equity, stock markets, etc.

Banking services in India

Banking in India is moderately consolidated, with the top 10 players accounting for approximately 60 per cent of the total industry. The Indian banking sector is majorly dominated by public sector banks.

The Indian economy has registered a rapid growth in the banking population in previous decade due to increase in demand for consumer loans, housing loans and credit cards. There will be a requirement of at least 40,000–50,000 additional bank branches and 160,000–190,000 additional ATMs in this decade.

Major services of banks in India include:

• Privatisation & Disinvestments
• Corporate & Debt Restructuring (Mergers & Acquisitions/ Takeovers)
• Insurance & Financial Institutions regulations
• Licensing and regulatory approvals
• Project / Assets Finance
• Consortium, Mortgage, Pledge & Lien Agreements
• Loan, Credit & Security Documentation
• Futures/derivatives litigation

Indian banks also provide business investments opportunity to the NRIs and person of Indian origin (PIOs). These 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
• 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
• Foreign Currency Non Resident (Bank) Account – 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

Government initiatives to boost Indian banking sector

The Government of India has provided an added advantage to the banking industry by proposing to set up an Asset Reconstruction Firm. The banks burdened with non-performing assets will ease considerably, with the setting up of such companies.

The Government of India has also permitted offshore banking units to be set up in special economic zones (SEZs).

Foreign direct investments (FDI) in private banking sector of India is allowed up to 74 per cent, where FDI up to 49 per cent is allowed through automatic route and FDI beyond 49 per cent but up to 74 per cent is allowed through government approval route.

Future of Indian banks

Indian banking industry is anticipated to grow exponentially and become the world’s third largest in asset size (projected at US$ 28,500 billion from the current US$ 1,350 billion) by 2025, according to a report by the Boston Consulting Group (BCG) India.

Policies for foreign investors to do business in India

"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 with dynamic growing businesses opportunities for non-resident Indians (NRIs). The Grant Thornton Global Dynamism Index gives a reflection of how suitable an environment it offers for dynamic businesses.

Scenario of Indian Economy

The Indian economy continues to grow at a good pace and holds a strong position on the global map. The country’s gross domestic product (GDP) has been growing at an average rate of 8.5 per cent for the last five years.

India's economy is amongst the largest in the world on the basis of Purchasing Power Parity. It is today one of the most attractive destinations for business and investment opportunities for NRIs and foreign investors with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. In FY 2011-12, the country attracted foreign direct investment (FDI) of around US$ 46.8 billion in various sectors.

The economy of India also boasts a robust financial system and deep capital markets. India’s demographic are very attractive with approximately 65 per cent of the total population falling in the age group of 15 to 64 years.

Foreign investment framework of India

The foreign direct investment (FDI) regime has been progressively liberalised during the course of the 1990s and continues to do so in the 2000s, with most restrictions on foreign investment being removed and procedures simplified. Foreign investors can invest directly and do business in India, either on their own or as a joint venture.

Some of the features of the consolidated FDI Policy of India and incentives offered by it:

• Indian companies are permitted to issue equity shares, fully, compulsorily and mandatorily convertible debentures (FCD's) and compulsorily and mandatorily convertible preference shares (CCPS) to the non-residents subject to pricing guidelines/valuation norms prescribed under FEMA
• Foreign investment is calculated on the basis of ownership and control of the Indian company.
• Use of foreign brand names/trademarks is permitted for the sale of goods in India
• "Single window" clearance facilities and "investor escort services" are available in various states to simplify the approval process for new ventures

Sole proprietorship in India

Sole proprietorship is the oldest and most common form of business. It is a one-man organisation where a single individual owns, manages and controls the whole business. An NRI or a person of Indian origin (PIO) residing outside India is allowed to do business in India through a sole proprietorship concern. The investment should be made on non–repatriation basis subject to satisfying certain other conditions.

Tax Incentives in India

The Government of India, for the purpose of accelerated growth of the Indian economy, has extended incentives in the form of tax holiday, deductions, rebates etc under the direct/indirect taxes. Primarily, such incentive relates to export promotion, new industrial undertaking, infrastructure facilities, software industry, research, promotion of backward areas etc.

Emerging Investment trends in Indian Healthcare Sector

The Indian healthcare industry is expected to reach US$ 79 billion in 2012 and US$ 280 billion by 2020, on the back of increasing demand for specialised and quality healthcare facilities.

Further, the hospital services market, which represents one of the most important segments of the Indian healthcare industry, is expected to be worth US$ 81.2 billion by 2015.

Meanwhile, the Indian pharmaceutical market is expected to grow at a compound annual growth rate (CAGR) of 15.3 per cent during 2011-12 to 2013-14, as per Barclays Capital Equity Research report on India Healthcare & Pharmaceuticals.

India is the most competitive destination with advantages of lower cost and sophisticated treatments, highlighted the RNCOS report titled ‘Indian Healthcare - New Avenues for Growth’. The report further elaborates that several key trends are backing the growth of healthcare in India.

Emerging trends in Indian healthcare industry

The healthcare sector is one sector that has witnessed tremendous entrepreneurial activity over the last few decades across the entire value chain. The emerging areas (diagnostics, pharma retail, biotechnology and life sciences) within healthcare are playing a significant role in attracting global players to India to set-up a number of allied industries in partnership with domestic players. This is also providing Indian entrepreneurs considerable opportunities to invest in healthcare. The way the current financial climate is shaping-up, an entrepreneur needs to think out-of of-the-box prior to making investments, as identifying the correct sector and the most suitable business model is key to survival and growth in the current times.

Investment trends in Indian healthcare sector

Driven by increased domestic demand for high-end investment services as well as medical tourism, the healthcare sector has attracted huge investment in recent times. Healthcare in India is likely to see increased investment from US$ 34.2 billion in 2006 to US$ 78 billion in 2012 (CAGR of 15 per cent), with 80 per cent of investments from private players. The investments to this scale are expected to increase the bed ratio from 0.9 beds per 1000 people to 1.85 beds per 1000 people.

Moreover, large scale investments in infrastructure are required to make healthcare facilities at par with developed countries.

According to a survey conducted by consulting firm, Grant Thornton, India is expected to witness the largest number of merger and acquisitions (M&A) in the pharmaceutical and healthcare sector in 2012. The survey that was being conducted across 100 companies stated that fourth of the respondents were bullish on acquiring companies in the pharmaceutical space.

"The expectations of M&A activity in the pharma and healthcare sector could be explained by factors such as the impending patent cliff in the US, the increasing attractiveness of India as a low-cost R&D destination and the increasing success of Indian firms in getting ANDA approvals," said Sunil Makharia executive VP (finance) Lupin Pharmaceuticals. Patent cliff refers to expiry of legal protection to top-selling drugs.

Government Initiatives

The healthcare sector in India is witnessing a growth trajectory. The Government has taken several steps required for non-resident Indians (NRIs) to invest in healthcare and to develop healthcare sector infrastructure within a short span of time. The Government has decided to increase health expenditure to 2.5 per cent of the gross domestic product (GDP) by the end of the Twelfth Five Year Plan (2012-17) from the current 1.4 per cent.

Role of Private Sector in the Indian Economy

The Indian economy today boasts of a strong annual growth rate, deep capital markets and liberalised foreign direct investment (FDI) regime. The economy of India has continuously recorded high growth rates and has become an attractive destination for investments.

India has been the favoured investment destination in Asia, according to a report by Mecklai Financial. India has received inflows worth US$ 11 billion in equities and US$ 4.7 billion in debt investments on a year-to-date basis.

Indian economy outlook was presented as being positive and robust by Zinnov Management Consulting. Both multinationals as well as Indian companies aiming for growth need to focus on the long-term investments in India.

The liberalization and globalization of the economy has led to free inflow of foreign direct investment (FDI) along with modern cutting edge technology, which increased the importance of private sector in Indian economy considerably. Private sector in the past few years has witnessed significant increase in terms of investment and its share in Gross Domestic Product.

Key Private Investment Sector in India:

Healthcare: The health care sector of India has opened new investment opportunities for non-resident Indians (NRIs) and person of Indian origin (PIO) to invest in India because of the rise in disposable income, penetration of health insurance and unhealthy lifestyle of present generation.

Food Processing: India is emerging as sourcing hub of processed food because of huge agriculture sector, abundant livestock, and cost competitiveness. The food services sector in India is expected to register a growth of 50 per cent in investments in 2012 to about US$ 750 million, as food suppliers and retail companies plan to scale up business and stay competitive by tapping the large potential of the domestic market.

Real Estate: Returns from the investments in real estate sector of India have consistently performed well and have even outperformed other sectors. The sector is offering huge investment opportunities to NRIs and PIOs because of the friendly policies of the Government of India. People residing outside India holding Indian passports as well as PIO are allowed to invest in residential and commercial properties in India, according to the Reserve Bank of India.

Pharmaceutical: Pharmaceutical sector of India is gaining its position as a global leader. The pharma market in India is expected to touch US$ 74 billion in sales by 2020 from the current US$ 11 billion; according to a PricewaterhouseCoopers (PwC) report. Growth will be driven by the fastest growing molecules in the diabetes, skincare and eye care segment, as per a report by research firm, Credit Suisse. So, it is one of the most important investment sectors in India.

Power: India has been one of the top performing clean energy economies in the 21st century, registering the fifth highest five-year rate of investment growth and eighth highest in installed renewable energy capacity. The sector is opening up new opportunities for NRIs/PIOs.

The importance of private sector in Indian economy can be viewed from the tremendous growth of Indian IT & ITeS industry including both BPOs and Indian software companies, private banks and financial service companies.

Growing Healthcare Market in India

India is one of the most profitable healthcare markets globally. The sector is one of the largest and rapidly-growing sectors in India, in terms of revenue and employment. The Indian healthcare sector comprises the sub-sectors of hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment.

The main challenge is to deliver affordable health care services to India's billion-plus population. This signifies enormous opportunities for the medical community and other service providers in India. The leading factors supporting the growth of the industry are- prevalence of various diseases, rising urbanization, untapped market, increasing life expectancy, and active private sector participation. The healthcare in India is controlled mostly by major foreign companies. The foreign companies have subsidiaries in the country, mainly because of the availability of cheap and skilled labor.

The Indian healthcare sector is a rapidly-growing sector with high potential for future growth, both in urban and rural India. In the year 2011, the sector was sized at US$ 50 billion as it employs a total of 4.5 million people directly and indirectly within India. The sector is poised to grow to US$ 100 billion by the year 2015 and further to US$ 275.6 billion by 2020, according to the estimates by ratings agency Fitch.

FDI in Hospitals and Manufacture of Medical and Surgical Appliances

The economic reforms launched by the government from 1991 onwards have resulted in significant economic growth and the integration of India into the global economy. With the opening up of the Indian capital markets to Foreign Institutional Investors, the foreign direct investment regime too has been increasingly liberalised.

The health care industry in India has been witnessing a potential upsurge for the past few years especially in the hospitals and manufacturing of medical and surgical appliances.

The total inflow of FDI in India in the hospitals and diagnostics sector was US$ 1 billion from April 2000–April 2011, according to Department for Industrial Policy and Promotion (DIPP), which is responsible for formulating the FDI policy in the country.

FDI inflows to medical and surgical appliances are estimated to be around US$ 20.5 million. Medical and Surgical Appliances is Rs 981.7 million industry with a share of 10.59 percent in the global market.

Some of the government initiatives boosting Indian healthcare sector are:

There have been a number of initiatives taken up by the Government of India for the enhancement of healthcare sector in the country. Some of them are:

100 per cent foreign direct investment is permitted for health and medical services under the automatic route.

The National Rural Health Mission had allocated US$ 10.15 billion for the up gradation and capacity enhancement of healthcare facilities. The aim of NRHM is to provide facilities of quality healthcare in India.

In March 2010, the government allocated an additional US$ 1.2 billion for six upcoming AIIMS-like institutes and upgradation of 13 existing government medical colleges in order to meet revised cost of construction.

Investment Scenario in Indian Market

The process of reforms as part of liberalization has resulted in greater investment in Indian market. In today's economy of less income growth and highly increasing cost of living, one has to know how to use his/her savings to generate higher returns. Availability of too many options and no clear idea about these choices is creating a hostile situation for the investor to choose the best among the available alternatives.

An investor has several investment alternatives (such as stocks, bonds, precious metals, etc.) to choose from, depending on his risk profile and expectation of returns. Different investment substitutes represent a different risk-reward trade off. Low risk investments are those that offer assured, but lower returns, while high risk investments provide the potential to earn greater returns. Hence, an investor can choose the most suitable investment on the basis of his/her risk tolerance.

Best investment options in India

Some of the investment alternatives available in the Indian investment market are:

• Investment in Fixed Deposits- FD is one of the safe investment options with the current annual rate of interest of 10 per cent.
• Investments in Insurance- Insurance-cum-investment options like unit linked insurance plan (ULIPs) are beneficial for the investors. Insurance offer quality services to cover life, money and assets along with low-risk profits.
• Investment in Mutual Funds- People may select mutual funds as an investment alternative on the basis of long term performance, short term performance, consistent returns, etc.
• Investment in Equity- Private equity as an investment substitute is growing fast in India. With a business of US$ 20 billion in 2010-11, the share of equity investments is expected to increase in coming years.
• Investment in Public Provident Funds- PPF is a government guaranteed fixed income security with a minimum amount of Rs 500 and maximum of Rs 1, 00,000 in a financial year; PPFs are now a popular choice of investment in long run.

Points to be considered before taking investment decision

Risk – It is important for the investor to choose the investment option on the basis of his/her risk profile. For e.g. - A low risk investor should not invest into equities. He should look for the safe option for investment. Risky asset class causes a loss of principal.

Liquidity – Liquidity is also an important criterion for the selection of Investment Avenue. For e.g. - An investor should not invest into public provident fund (PPF), if he needs money in 3- 4 years time frame. PPF has minimum lock in period of five years.

Time horizon – Investment should be done by considering the specific time horizons. For e.g. - For short term investment, mutual fund or fix deposit could be a good option, where as for long term, real estate and regular investment into equities could be a good option.

Taxation – Taxation affects the real returns of investment, investor should always look at the tax aspect of any investment before investing into it.

The scope for business in India is vast. Indian economy has grown as one of the significant economies in the world having immense potential towards long-term growth. The growth has been backed by the various industrial sectors to a great extent. The sectors mainly include technology, manufacturing and service industry.

Business Opportunities in HealthCare Market in India

The healthcare sector in India is growing fast. The sector is currently estimated to be worth US$ 65 billion and is expected to reach US$ 100 billion by 2015, according to the rating agency Fitch. The growth in the sector comes due to- increasing population, growing lifestyle-related health issues, economic treatment, rising incomes, government initiatives, etc.

India is the first country to have a large number of multinational healthcare providers. This rapidly developing industry in India has led to a qualitative shift in patient demands. This has resulted in centers of medical excellence developing and acquiring the latest medical equipment to treat their domestic and international patients.

Due to the development in the rural areas, people even in the villages are now become more conscious about their health issues. They are opting for more health benefits for safe and diseases free existence. This will create huge investment opportunities in the sector.

Opportunities for investment in Healthcare

Healthcare infrastructure: A huge amount of private capital will be required in the coming years to meet infrastructure needs of healthcare in India. An additional 2 million beds are required for India to bridge the gap and prepare for demand estimations in 2025. The government is expected to contribute only 15-20 per cent of the total, providing a vast opportunity for private players to fill the gap.

Diagnostic & Pathology Services: High cost difference in India allows for outsourcing of pathology and laboratory tests by international hospital chains

Telemedicine: There is a vast opportunity for investment in telemedicine as it provides rural areas access to better quality healthcare.

Medical tourism: Medical tourism in India has also received a boost with the arrival of patients from different countries. According to industry estimates, the market size of medical tourism is estimated to be around US$ 2.5 billion and is growing at over 25 per cent per annum. Hence, create enormous investment opportunities in India.

Contract Research: Contract research is a rapidly growing segment in the Indian health care industry. Foreign players are entering into contract research to reduce their operational and clinical cost.

Health Insurance: Increasing healthcare cost and burden of new diseases along with low government funding has raised the demand for health insurance coverage. Less than 15 per cent of the Indian population is covered through health insurance. With the increasing demand for affordable quality healthcare in India, the penetration of health insurance is poised to grow rapidly in the coming years.

Major Growth Drivers

• 100 per cent FDI is permitted for all health-related services under the automatic route.
• Lower tariffs and higher depreciation on medical equipment.
• Income tax exemption for five years to hospitals in rural areas, Tier II and Tier III cities.
• Increasing penetration of health insurance.
• High-growth in medical tourism.

Investment Scenario in Indian Power Sector

Indian power industry has a long way to go. India’s fast-paced economic growth and its rapid rate of industrialisation and urbanisation have fuelled an increased demand for energy.

India has made remarkable progress in the power sector during the eleventh plan. The sector ranked sixth among the leading sectors of the Indian economy and has attracted US$ 4.6 billion in foreign direct investment since 2000. There are three major pillars of the sector - generation, transmission, and distribution. Generation is further divided into central sector (Public Sector Undertakings), state sector, and private sector, which constitutes total installed capacity of 31.21 per cent, 47.49 per cent and 21.17 per cent respectively.

Investment in Power Sector

With the population increasing at a rapid pace and a wide gap between demand and supply, the Indian energy sector offers strong opportunity to industry participants. After China and the US, India has been ranked as the third best investment destination in renewable energy sector.

The power sector in India requires an investment of up to US$ 400 billion in a span of five years to end on March 2017, according to P. Uma Shankar, Secretary, Ministry of Power, India.

The organised trading business in energy sector is set to be opened up for NRI invest in India. This attracts foreign funds to invest in the Indian power industry. 26 per cent FDI will be allowed at par with the level of commodity exchanges in the sector.

Investment Opportunities and Future Prospects

If India continues to grow at the current rate, the Indian economy would emerge as the second largest in the world, next only to China, by the year 2050. It is therefore expected that, the demand for energy would also rise substantially in the future.

US companies investing in India's green energy market will have good prospects and it will be a win-win situation for both the countries.

The generation capacity of the country stands at over 180 MW (as in August, 2011) with a dominant share of the state sector. The private sector, which currently contributes around 22 per cent of the generation capacity, is expected to increase its share to 52 per cent by 2017.

Government Initiatives

Indian Government has proposed various proposals in the budget 2012 to stimulate investments in power sector in India, which provides a massive opportunity to the American companies.

In order to attract NRI invest in India, FDI up to 100 per cent is permitted under automatic route for projects of electricity generation (except atomic energy), transmission, distribution and power trading.

The Government of India is working on the plan to generate 470 gigawatts (GW) of nuclear energy by 2050, announced in 2009. Thus, it opens the door for huge opportunities in the sector.

The Government has planned to set up four solar thermal power projects through the solar energy corporation of India.

Being one of the fastest growing economies and the second largest populated country, India represents an attractive investment destination for the power industry.

FDI is a source of Indian Economic Growth

India is developing into an open-market economy. It is the fourth preferred destination for foreign investment just after the United States, China and Britain. India attracted overseas investment of US $8.1 billion in March, the highest ever monthly inflows. Cumulative FDI inflows for the fiscal 2011-12 amounted to US $36.50 billion.

The Indian economy has continuously recorded high growth rates and become an attractive destination for investment. Government offers various facilities to non-Indian resident to attract foreign investment in India. The factors that attract investment in India are stable economic policies, availability of cheap and quality human resources, and new unexplored markets. The government has taken various initiatives like - allowing foreign education providers to set up campuses in India, FDI in limited liability partnership firms, etc.

Impact of FDI on Indian economy

Foreign direct investment in India has enabled the country to attain a certain degree of financial stability and economic growth with the help of investments in different sectors. After liberalization of trade policies in India, there has been a positive GDP growth rate in country’s economy.

Foreign investment in India helps in developing the economy by generating employment, generating revenues in the form of tax and incomes, development of infrastructure, backward and forward linkages to the domestic firms for the requirements of raw materials, tools, business infrastructure, etc.

How to make FDI in India

Foreign direct investment in India is permitted in the form of financial collaborations, joint ventures, technical collaborations, capital markets and private placements.

Foreign investors are free to invest in India except few areas. There are some activities and sectors which require prior approval of Reserve Bank of India (RBI) or Foreign Investment Promotion Board (FIPB) for e.g. manufacture of cigarettes and tobacco, manufacture of electronic aerospace and defence equipments, manufacture of items exclusively reserved for small scale sector with more than 24 per cent overseas investment and all other proposals falling outside notified sectoral policy.

The foreign investors can invest in India in two ways:

Incorporation of an Indian company: The foreign investor can set up a separate legal entity in India under the provisions of the Companies Act, 1956. The foreign investors can invest in such Indian company up to 100 per cent of capital based on sectoral guidelines specified by the Government of India.

Unincorporated entity: A foreign company can operate in India, by establishing a Branch Office of the other place of business (foreign entity), subject to conditions and activities permitted under the Foreign Exchange Management Regulations.

Who can invest in India?

A non-resident of India (other than a citizen of Pakistan or an entity incorporated in Pakistan) can invest in India, subject to the FDI Policy under automatic or government route plans.

Qualified financial Investors (QFIs) are permitted to invest through SEBI registered Depository Participants only in the equity shares of listed Indian companies through recognised stock exchanges in India under various SEBI guidelines.

Foreign institutional investors are allowed to invest in the capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs can acquire shares or debentures of Indian companies with the help of stock exchanges in India.

Investment Opportunities in India

Investment refers to the concept of delayed consumption, which involves purchasing an asset, giving a loan or keeping funds in a bank account with the aim of generating future returns.

India has become one of the fastest growing economies. Investment growth in India is related to the growth of the economy. These days, people are getting more money as compared to the previous years. So, most of the investors look for emerging markets like India, where the growth rate is higher than the developed economies.

Today, it is very difficult to choose a sound investment plan so, most of the investors come with a question in mind “where to invest in India”.

There are various business investment opportunities available in both government and private sector according to risk, return, taxation, duration, etc.

Various Investment options in India

Short Term Investments options:
Bank Fixed Deposits: FD is the opportunity for retirees to diversify their investment portfolio. It is a very safe investment option in India as it generates stable income. It has low risk appetite. The period of ideal investment is 6-12 months.
Money Market Funds: They offer better returns than savings account without compromising on liquidity. The primary objective is to protect one’s capital and maximize returns.
National Saving Certificate (NSC): It is backed by the government of India, so it is a safe investment method. Minimum amount is Rs.100 and there is no upper limit.

Long Term Investment options:
Gold: Investors generally buy gold as a hedge or safe haven against any economic, political or social crises. Gold is not the right option for investment in short run because it doesn’t pay any return or interest. But, in the long run, investing in gold is no doubt, a profitable option as it can be quickly converted to cash.
Real Estate: In India, real estate has become one of most successful business investment opportunity in the last few decades. It has huge prospects in sectors like commercial, housing, hospitality, retail, manufacturing, healthcare etc.
Investment in Stock: Stocks are shares of a company. When you invest in a company’s stock or buy its shares, you own a part of a company. It is the major investment option in India in long run.
Public Provident Fund (PPF): This includes fixed-income investment for high tax payers with low risk.
Mutual Funds: Investing in mutual funds is also subject to market risks but the return is good.
Life insurance policies, bonds, debentures, etc.

Investment options depending upon goal:

• Investment for safety – money market mutual funds, bank deposits, etc.
• Investment for income – company deposits, government securities, treasury, preferred stocks, etc.
• Investment for growth – equity mutual funds, domestic and overseas stocks, etc.
• Investment to fight inflation – gold, real estate, bonds, etc.

Investment from Tax Perspective:

One can minimize the tax liability on salaries by investing in eligible investments qualifying under Sec 80C. It includes investment in PF contribution, PPF investments, infrastructure bonds, mutual funds, life insurance premium, repayment of housing loan principle, PO deposits, etc.

So, there are innumerable investment opportunities available in India. All, one needs to check is, his interest, risk appetite, and investment tenure.