The population of India is estimated at over 1 billion, and continues to grow every year. The Indian economy is the fourth largest economy of the world, when we talk in terms of Purchasing Power Parity (PPP). The economic reforms initiated since 1991, have been providing an investor-friendly environment through a liberalized policy framework spanning the whole economy. These reforms have helped India in becoming more prominent in undertaking importing and exporting activities, and other such forms of overseas businesses.
More than 10 per cent of the employed population works in industrial fields, and these include manufacturing and production of textiles. Process outsourcing is another business in India in which economy has grown drastically over the years. Residents of India are fluent in English, they have good communication skills for doing customer service, they are conversant in tech support, and other similar service industries, so the Business Process Outsourcing (BPO) segment has good scope in India. In fact, out of the top fifteen outsourcing companies across the globe, seven of the large firms are located in India.
India also produces a good amount of agricultural products, along with development in segments such as logging, fishing, and forestry. Investment is increasing as banks have become more stable and secure, which was also part of the economic reform. India’s growth rate is approximately 7% on an average, and has greatly reduced the amount of poverty among its residents over the years. The constant growth of main industries has given more individuals the opportunity to have stable employment.
India is one of the most sought after destination for business and investment opportunities. The reasons behind this are:-
- Extensive manpower base
- Diversified natural resources, and
- Strong macro-economic fundamentals
Over the last ten years, the Indian Economy has seen a paradigm shift and is on a robust growth trajectory. The Indian economy today claims of an increasing annual growth rate, deep capital markets and liberalized foreign direct investment (FDI) regime. India is one of the few economies to have withstood the recent global financial crisis and its gross domestic product (GDP) has been constantly growing in excess of 8 per cent per year. The country’s GDP has been growing at an average rate of 8.6 per cent for the last five years. India’s GDP growth projection is 8.5 per cent for FY11.
India’s economy has strong fundamentals and is host to several prominent global corporate giants that are leaders in their respective fields. According to the Global Competitiveness report 2010-11, India ranks 51st among 139 countries. India ranks higher than many countries in key parameters such as market size (4th) and innovation (39th). It also has a sound financial market (17th).
According to UNCTAD’s World Investment Prospects Survey 2010-2012, India is the second-most lucrative destination for FDI in the world. Indian markets have significant potential and offers prospects of high profitability and a favorable regulatory regime for investors.
About the Author
Harjeet is an Indian – born mass-market novelist, who covers the world internet related topics . He writes columns and articles for various websites and internet journals in the domain of Investments and Investing in India.
Tradervox (Dublin) – The euro has dropped to its lowest since July 2010 versus the dollar after EU leaders clashed over the joint bond sales which French Hollande is supporting to be introduced in the euro zone as a solution to the current debt crisis in the region. The EU Summit could offer an immediate solution to the problems in Spain attracting investors’ attention in to the problems in the region. This has sparked risk aversion in the market hence forcing the euro further down against the yen and the greenback.
