Investment 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.

Investment Strategies in Indian Economy

India is growing at a faster pace and brimming with investment opportunities. Recently, American Express predicted that India’s 100,000 ‘dollar millionaires’ will grow by 12.8% a year for the next three years. As per McKinsey Global Institute, the average Indian’s income will triple by 2025. The country is set to capture 1% of global trade soon, while merchandise exports have grown to an average of 24% a year over the past four years, according to Economy Watch. Goldman Sachs predicts India will rise to be the third largest economy in the world by the year 2035.

After the independence, strong socialistic and economic reforms, the economic growth climbed steadily. Also, after 1991 the embracement of open market principles for international completion and foreign investment, business in India today offers great investment opportunities for domestic and international sectors. Strong foreign fund buying has kept the share market chart favorable in spite of recent fluctuation in world stock market.

Currently, there are vast investment options in infrastructure, petrochemicals, pharmaceuticals, and telecommunication and service industries. Considering the nature of business, the Investment Strategies are designed accordingly.

The exact way through which financial planning is carried out can vary from one individual to another. This is mainly because of the potential of income and the risk bearing capacity. It is very natural that based on the income and risk appetite, one would invest.

A well-planned investment strategy is essential before having any investment decisions. A business strategy is generally based upon long run period. Thus, a balanced investment strategy, is generally required in the process of investment, which possesses long time period and some risk tolerance. There are numerous investment opportunities in India for you today as the economy of India is building strong, and you should capitalise on them. While some of them are long-term projects and call for large investments, other options include individual investment avenues and products.

India with a quite matured capital market backed by liberal policies and strong banking system has turned to a profitable business ambience both for domestic as well as overseas investors. Both Mutual Fund and Equity Fund investments suggest a favorable and significant return. Considering the service industries like hotels, restaurants, placement concerns, Indian scenario is enviable. Along with development and advancement as mentioned before the infrastructure industry in India is booming, which can accommodate both types of investors. As far as investment strategies are concerned, they vary from one to another business. Business strategies always have to take into account government policies, restrictions and relief.

In a nutshell, today India can boast of enriched business environment and its economy guaranteeing high return and offering employment to huge work force.

The Better Part of Foreign Investment in India

In the last few years India has witnessed a major change in its economic environment, on the back of foreign investments into India. The huge foreign capital investments have bought India considerable financial benefit. Markets are expanding in India, trade policies are being liberalized and there had been further development in technology and telecommunication as well. After China, India is now growing in popularity with a huge amount of foreign capital coming in. Foreign investors are putting in money in fields like telecommunication, infrastructure, computer hardware and software, information technology and hospitality.

Investors from abroad have been providing huge financial help to companies, corporations, business and organizations and here lies the significance of foreign direct investments (FDI) in India. India is growing in opportunities because of huge foreign investment. There are some automatic routes for making the investment and one can even invest through several processes undertaken by the Government. One can go for several joint ventures if one wants to be an effective direct foreign investor. One can really make a favorable fortune if one invests in sectors like real estate education, biotechnology, alternative energy sectors and other specialized fields.

With the route of foreign investments into India, companies can start a new venture and at the same time opt for business expansion. Thus, this is a better way to start and grow big at the same time. There are several advantages of a direct foreign investment in India. Wages in India are cheap and this is the reason more number of people would want to start here.

There are special investment privileges being offered at the place and this is the reason the concept of FDI in India is gaining immense popularity. Moreover, the investors would get a tariff-free access to the Indian markets and this is a real advantage for them. The investors can even enjoy tax exemptions at the place and this is the reason investors would want to put in money at the place more than once.

When talking about foreign investments into India one may focus on other aspects as well. With the entry of huge capital, there are industries in India which have been breathing fresh lease of life. They were at the verge of being extinct and due to the efforts of some foreign investors they have gained life once again. In fact, the legal aspects in India are quite flexible for foreign investors to operate and this is the reason it has been possible for people to make a fortune in this part of the world. Moreover, as India is rich in human resource, so starting anything new seldom faces hindrance over here. Therefore, with right training and correct infrastructure India will continue to be a favorite to the investors involved in legitimate investments.

The Scope of Foreign Direct Investment in India

The foreign direct investment into India is a process for facilitating people to invest in India. If you are really interested in doing business in India with the help of foreign capital then make sure that you are investing in the right source and you can do this in a number of ways. Even when India was going through tough times, it was still a good financial breeding ground for all foreign investors. They have never felt the pressure as their genre of investment has always been unleashed for the purpose of ushering more capital within the country.

There have been several Indian infrastructures who may have suffered in the field of production and manufacturing due to lack of essential capital. However, a good way for them to survive is by offering FDI equity to companies or individuals who would be interested in making huge capital investments.

Foreign direct investment in India is done in several ways. Investment can take place through effective financial collaborations. In this case the common interest is the yearly financial turn over and to make this work out two or more companies come in association and they share much in contributing towards a common financial consensus. The effort has to be there from both the ends, from the part of the investor and also from the part of the collaborator. When collaborating, you can keep the leadership factors aside and think about a healthy togetherness contributing towards a bigger financial platform.

As a way towards FDI equity is also a joint venture and a technical collaboration. Once the company delivers the plan of taking things technically ahead then other can contribute in a different way. It is more technical and less of financial collaboration.

Foreign direct investment in India is not permissible in all industrial sectors as it is not allowed in the domain of arms and ammunitions. You cannot invest in the field of atomic energy. You cannot invest anything related to railway and transport and you cannot even put your money in the field of coal and lignite. It is even not permissible to invest money in matters of metal mining. Thus, keeping aside these domains you still have a huge scope for investment.

The Opportunities and Outcomes of NRI Investments in India

While analyzing the structure of NRIs investment in India, first you must know in depth about FDI or foreign direct investment. Soon, you may have your organization or company in India and you might be expecting an international intervention which can surely help your company grow with years. In this case you would be appositely provided with expertise, funds and foreign money so that you can well channelize you efforts and move one step nearer towards an empirical set up. There has been much scope for FDI in India and the genre is intensifying with time. Foreign investors too are trying to make the best use of Indian intellect to make more out of the money that they are investing.

Though the scope is huge but India’s attitude in matters of foreign direct investment has not been so encouraging. You can witness hundred percent FDI influence only in case of individual retailing. Most Indian entrepreneurs are of the opinion that an FDI plan is quite ruining for Indian economy and that they would in no way be apt for a domestic economic plan. Supremacy of multi-branded retailers would mean an end to small retailers and manufacturers. They are of the opinion that a strict entry for multi branded retailers would mean loss of employment for a major section of the population. This is no way encouraging for NRIs investment in India.

However, the encouraging part about the FDI in India is that there is a section of the population who believe that if a country allows the FDI concept it would be economically beneficial for the country itself. In the process, the foreign fiscal intervention would surely allow you to have a high standard of living and the country would really stand stalwart with prefect infrastructural facilities. The greatest positive implication of FDI is that it allows a quick flow of cash. Following the way you can earn more amount of money in the least amount of time.

After all FDI in India is not a threat. There is a section of the population who feel that with apposite FDI intervention the farmers would get more money for the products which they are selling directly to the retailers. Most of the time, the mediators keep a huge part of the money for themselves, and they make the farmers suffer in the process. FDI brings the end of the sufferings and once India starts outsourcing and becomes an FDI figure itself things would really seem to improve.

There are several reasons why people would want to invest in India. Cheap resource and a strong operational unit have always kept India at the front seat in matters of ushering more foreign investments. Thus, foreign companies have always opened up in India and they are making huge amount of money through an effective production process. These foreign companies are always in look out for making the most of all the better opportunities that come on the way.

When speaking about NRIs investment in India, you must know that there are two types of FDIs. One is the inward FDI and the other one is the outward FDI. When you are investing money after a second country it is outward FDI and when you are accepting investments from a third party it can be better denoted as inward FDI.

However, while having a synopsis you can say that investments both directly and indirectly can be beneficial if you are following the rules correctly.

Taking a Leap with Standard Investment Opportunities

Recently there has been a major shift in Indian fiscal system. Several elements in the global fiscal changes are affecting Indian economy to a great extent. Recession has a great role to play here and it has enhanced the scope for India to help the east gather the necessary experience. Now recession has moved to the west and the Indian finance is having a good come back home. However, the Indian economy is changing façade quite quickly and true investment opportunities are giving Indian financial scenario a stable ground.

Investments are huge when the NRIs are returning to the country. They return with a favorable amount of foreign capital and the intent to start something new in India. People are selling their oversea assets and they are trying to return with proper investment ideas. They have the mind to alter the face of Indian economy. To do this enough capital is not the only catalyst; you must have a good plan towards financial expansion. After recession when Indian commerce was striving to survive, the investors took matters in hand and they tried to return with good hopes for their native land.

The kinds of investments in India are always controlled by the Indian exchange control laws. Making an investment is not an easy thing to do. All contributions are largely influenced by the Foreign Exchange Management Act (FEMA). However, Reserve Bank of India remains as the authoritative head. The FEMA is the tried best in managing all aspects like bank deposits, foreign exchange, shares, securities, government bonds and direct foreign investments. The network is ever expanding and whenever there is a change, a global notification is issued for the benefit of all people.

Regarding matters related to investment opportunities the FEMA will not permit investors to enter all genres. Moreover, the residential status of an investor depends on several things. His retention would be judged based on his intention. How much he wants to get attached to India is a major deciding factor. For a foreign investor to start business in India, his number of residing days in India comes within the count. To be considered as a worthy investor he must have a recent threshold of 182 days. This makes him eligible to invest in Indian economy at large.

Investing in a foreign land is more flexible when compared to the Indian structure. In India things are bit rigid. There is lack of flexibility in matters of international transactions in India. However, the non-resident Indians enjoy certain advantages in this case.

If you are returning to India permanently you can still retain your property which you own aboard. The property can be your legally earned asset or you can even inherit the property from someone who stays abroad. In both cases you can still enjoy your possessions.

The returning Indians have to do two more things. A person coming back to his native land can still hold on to his overseas bank account but for this the person must acquire RBI’s permission. After you settle down in India and acquire the status of a resident it is important that you re-designate your bank account. You have to make the process happen through a proper application. The banker would only ask for a proof to show that you are currently employed in India. In fact, investment opportunities in case of the non resident Indians are surely endless.

Infrastructure in India and its Varied Opportunities

The Infrastructure for India can be based on power and electricity and it is a common knowledge that these infrastructures needs serious built ups, the service sector has taken a leap into excellence and is inviting more and more clients from abroad to set up their customer service industry in the Indian market. The transport is another sector and the labor migration and security all are different sectors that need to be explored a little more so that they can bring in more prosperity for the market. The infrastructures can be improved by more planning on each side and sector and then investing on them so that they grow.

The labor cost are lower in India than its competitors and the hence there is no shortage for cheap labor. The fresh stream of air in the industries can be brought as incentives from different governmental bodies and public sectors. There are various Investment Opportunities for the Indian market as it is a source for raw materials and there is the modern work forces that bear a better communication skill that can bring in the changes. The investment can be made by investors who are looking for different ways to earn profit.

This democracy is one of the largest in the world and hence it has become a top resource for the countries worldwide and developed the growing opportunity for different Infrastructure for India for different manufacturing units. The deposit of natural resources like iron ore, coal, titanium ore, petroleum, mica, limestone, dolomite and many other such ores give India a lot of opportunities to channelize its resources. The area that is covered by forest is also vast and therefore can be tapped for other resources like the flora and the fauna and the different rare timber and vegetation.

The Indian economy has traditional farming by using modern agriculture. It has a chunk of workers who work on handicrafts that are done by using bare hands and small machines propelled by hand. The Investment Opportunities will be seen with the large industries like the large machine driven manufacturing units and service units. The food producing units cater to the food for the people all over the world. The industry based on production of sugarcane, rice and tea have also grown to a great extent and there are also the products from milk, fruits and vegetables ruling the market and these can compete well in the global market.

This is a land of diverse economy and varied resources. The Infrastructure for India does comprise of areas that have not been tapped properly as yet and other side shows us sectors that has grown and has brought in economic restructuring for the country. The industry that introduced Foreign Direct Investment are the service sectors, fuels and chemicals, the area for electrical equipment and the construction industry and the telecommunication industry. The drug and food processing are other areas that have grown and the recent growth has been seen in the outsourcing industry. India still has areas that has huge potential and not yet been tapped and they can help the Indian states and the country gain prosperity as a whole.

Indian Economy and its Different Phase for Growth

The economy of Indian subcontinent was as low as the other developing countries and it has come up slowly and steadily as time went by. Being a huge expanse, the Indian population has got varied resources and type of people. The Indian Economy has grown since the time of the Indus valley civilization. The days during the rule of the East India Company had been a serious downturn as the villages grew dependent on the East Indian merchants and had stopped normal farming activities. The raw materials were bought at much cheaper rates than from any other countries and the finished goods were forced down to the people of this continent at an exorbitant rate.

The Business in India started to grow when India got Independence and started to work hard to develop the economy to be self-reliant. There came up different policies and plans that helped in the growth of the economy. The main support was from agriculture and then the other side was the industry that was formed for extracting raw materials. Then industry started to grow from the knowledge of manufacturing from the raw materials. The Gross Domestic Product was calculated at 2.3% in the year 1951-52. The current GDP is at 9% as calculated for the year 205-06.

The trade and manufacturing industry came up and then came the foreign investments for liberalised trade and other reforms started to support the economy to flourish. The Indian Economy started to gain momentum as Government came up with new and better ideas and the policies that they introduced helped the economy to be liberalized. The reforms started from this point and the economic growth started with the introduction of trading of the popular brands. The foreign investment in India started and kept on growing at a steady rate. This diverse economy has helped the national and the global economy too.

The current trend shows that there are few Businesses in India that are good for the entrepreneurs and few such businesses are tourism and the automobile business. Indian population love to move around and thus the national spots and few International spots are good for the Indian citizen and there are foreign tourists who visit India to explore its beaches and deserts, mountains and wild life and hill stations and rural villages , all of which have so much to offer to the tourists towards full enjoyment . The industry related to the automobiles and the automobiles parts are a good source of income for the world over and India has got a good chunk of the industry thriving in Indian market.

The textile market has been a strong point for Indian market from the past and as days passed by, the industry has come up with modern style and apparels, textures and colors and new ideas. The other such zones that have opportunity for the Indian Economy are export of software to the foreign countries and the engineering goods for entrepreneurs having rising demands for such products. A few challenges like a huge population, unemployment and poverty are still there to hamper the growth of the economy but as there has been a steady growth in so many sectors, the Indian businesses will keep prospering the economy of the country in the days to come.

Investing in India is a Good Way Out

India is a land with far reaching hopes in the field of foreign investment. You give one and you get plenty in return. The soil of India is yielding. For any external speculation you have lots to gain from this eastern zone of the world. Investing in India is a good work and you would surely have the golden days in future for this. For proper inflows in India there have been several releases in the genre of simplified compendium based on FDI or Foreign Direct Investment. These, several FDI processes along with other associated investing terms opportunities are growing to make this ground the best field for utilization and investment.

Things are so promising in this part of the world that any source of foreign investment in India can locate the nodal bodies and best invest for more profitable gains in life. It is also important for you to know that the Reserve Bank of India has been unleashing some of the sections in the sector of FEMA or Foreign Exchange Management Act allowing people living outside the periphery make lucrative investments in India. These are open routes for the investors so that they can put in that extra to have a more than expected gain in business.

Recently, in matters of investing in India, the government is trying to take away all the liberties which the NRIs have been enjoying till now in sections like real estate, aviation and the others. There is so much for the investors to put in in the multi-faceted retail production, agriculture, retailing and other wings in international business. At the time of ongoing discussions the government makes all attempts to frame out concrete policies in the genre. This is just like an encouragement enticing all potential investors to rush with their several investment proposals for a perfect interpersonal business relationship down the years.

FDI has promised to introduce revolutionary alterations to make things more promising for all potential Indian consumers. Recently, there has been a partial unleashing of the retail sector with a 51 percent of foreign direct investment in matters of single brand retailing. Thus, big names like Versace, Marks & Spencer, Nike, Adidas and others are fast coming up with their stores in several parts of India.

When investing in India the foreign names no more have to concentrate in trying to set up things. They are surely planning to make things happen in the bigger way. They are trying best to strengthen their holds in the field of communication and network retailing. They even have much to give in form of discounts and offer keeping pace with the Indian mode of linking things. Thus, when you are getting bigger brands in the same number of coins, you would have more reasons to make untimely purchases.

How to Gain Best From Infrastructure in India

A good set of infrastructures is a must requirement in making a country stand best. These are essential prerequisites to help a country flourish systematically. The Indian government has realized this perfectly and they are trying best to put things in order. Proper roads, steady telecommunication, perfect water supply, effective power grids and the like are constantly being established and renovated to make things smooth for investors both within and outside the nation. India is a good sector for international investment – this fact can only be proved with a definite economic infrastructure planning.

To attract better investment opportunities in India it is unlikely to have real means of growth. When foreign investing companies will have difficulty in spreading out they would be bound to think twice before making an investment. Thus, you have to think about the improvement of all major sectors like irrigation, electricity, gas pipeline and telecommunications to help reach the effects of developing nation reach to the interiors of the land. However, there should not be any sort of disparity between what has been actually planned in economics and the genre of actual financing.

To merge the gaps well and come up with an effective infrastructure in India it is essential for you to keep these points in mind. Firstly, much strength should be applied in the corporate bond market. When the bonds are strong you would be able to invest without doubts and difficulties. You must also make sure to allow insurance companies to come to the scene. This would help you arrange for that extra fund in business and for setting up better infrastructures. It would also be wise to welcome foreign investors for making a capital investment for the fast development of the infrastructures.

A good network of transportation in India has made good scopes for investment opportunities in India. This includes all, coastal shipping, road, rail, air transportation and other effective means of communication. The domestic sections of Indian market are greatly benefitted for having well-constructed roads in all parts of the country including both rural and urban areas. In fact, the connection between economic growth and effective infrastructure is always there. If you cannot connect or reach well how you would make the perfect use of your inventories – this is an important question to be asked.

It is required to have the best infrastructure in India to take economic growth to heights. The progress is slow but gradually things are really getting to their right places. Now, the world is beaming with new technicalities and for India to absorb the bests from these techno sources it is essential for the proper layout of the infrastructures. According to the reports as stated by UNCTAD, India is identified as one of the most attractive location where you can invest with the mind to get the best out of the place. Lots of infrastructure improvements have already been made and some more are still waiting in queue to make a mark globally.