Why Invest In India?
India offers investment opportunities to foreign investors. Right now, many companies are thinking to diversify their supply chain. India is emerging as a favourable destination for reducing risk. Besides, India provides many advantages to companies setting up their regional base. With a young population and a growing domestic market, India is one of the most exciting markets of the next decade. Also, it will be one of the few countries with a small but positive growth in GDP this year.
Foreign Direct Investment (FDI) in India
Besides, the government has been making appropriate amendments to the FDI policy to increase FDI inflow in the country. Today, India is one of the most attractive destinations for FDI. In fact, India ranks at number 1 position in the greenfield FDI ranking.
The total FDI inflow in India from April 2000 to December 2019 stood at US$ 456.79 billion. And, between April and December 2019, FDI in India stood at US$ 36.79 billion. The above statistics indicate the government’s efforts to improve the ease of doing business in India.
What Foreign Investors Need to Know?
Foreign investors to India need to understand that opportunities vary between different industries. The COVID-19 pandemic has only made these differences starker.
The last decade has seen India’s GDP growth rate hit international headlines with forecasts of 5% to 8% growth. Unfortunately, the previous two years have seen slower than forecast growth due to many factors. But as said above, India is still one of the few countries global experts see positive GDP growth in 2020.
Growth varies from industry to industry
However, in reality, some industries grew much faster than others. In 2019, education and media markets grew by 4-5%, while agriculture, paper and textiles had far lower growth levels around 1.5%.
Therefore, before you invest in any sector in India, you need to acquire industry expertise from professionals. M+V works with clients in all industries. Therefore, to help potential investors invest in India, we highlight a few of the industry’s that have higher potential for growth. For each sector, we summarise the recent trends and statistics, the impact of COVID-19 (as we currently know it), the key growth drivers and leading national and international investors. For a summary of the government’s response to Corona, please read our stimulus summary.
The industry expertise will help you invest in India with proper knowledge. If you would like to know more about any sector – or about an area not mentioned here – please contact us.