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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST
School children dressed in tri-colours of India's national flag, offer prayers on the eve of the country's Independence Day celebrations in Ahmedabad.

Finance Minister P Chidambaram's road show in Singapore highlighted India's strong growth and investment prospects.

 

Take a look at facts and figures that reveal India's growth story...

 

India's rapid pace of economic growth is both stable and sustainable. India's medium term growth prospects are due to its favourable demographics, resilient economic structure, stable democratic institutions, and continued infrastructure investment.


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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST
A boy sits on a cart in front of a solar power plant at Meerwada village of Guna district in Madhya Pradesh.

While growth has averaged 8.4 per cent between FY2006 and 2011, even in the face of a severe and persistent global slowdown, GDP growth in 2012-13 is expected to be 5.5-6.0 per cent.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST
Vendors wait for customers at Ima Market, one of the largest markets operated by women in Asia, in Imphal.

The private sector plays a key role in driving investment. Economic growth is largely domestically generated by high savings/investment, making it less vulnerable to adverse external developments.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

Rapid GDP growth juxtaposed with moderate leverage, is a reflection of sustained gains in productivity, high innovation capacity and improved education standards. These factors support continued investment and sustainable growth.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

In October 2012, government prepared a fiscal consolidation roadmap. As per the roadmap, the fiscal deficit of the central government will be reduced in a calibrated way from the targeted 5.3% of GDP in FY13 to 3.0% of GDP by FY17.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST
Labourers work on iron rods at the construction site of a flyover at Noida in Uttar Pradesh.

Structural fiscal reform marks a shift in the government's approach to fiscal consolidation.

While progress in debt/deficit reduction was impacted during the global financial crisis due to imperatives of a fiscal stimulus, revenue growth should continue to exceed expenditure growth, facilitating fiscal consolidation

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

The favourable fiscal/investment outlook is supported by key structural changes, including reduction in fuel subsidy, targeted cash delivery of subsidies, proposed introduction of Goods and Services Tax, further PSU divestment, liberalized FDI regime for multi-brand retail, insurance,

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

High debt tolerance

India has a large pool of domestic savings and developed local capital markets. Government debt is largely denominated in local currency and has a long maturity profile

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

Large external buffer

India's net external creditor status is buttressed by foreign investment, an expanding and competitive export sector, and among the strongest remittance inflows globally.

The combined effects have enabled India to build increasingly larger external liquidity buffers than peers and insulate the economy from an adverse global environment.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

While, export volumes have grown at roughly 21 per cent per annum in the last seven fiscal years, the slowdown in 2012-13 is in line with the current world trend.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

Stable macroeconomic environment

RBI seems to be getting traction with tight monetary policy and core WPI inflation is now below 5%. This would give the RBI room to cut policy rates.

Financial Stability and Development Council created to provide institutional framework for macro economic stability. Members include all financial sector regulators and the Finance Minister as Chairman.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

Amongst the fastest growing economies in the world and the 2nd largest emerging economy of Asia.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

India's average GDP growth rate is 8.4% for 2006 to 2011; GDP has crossed the $1.5 trillion mark.

While growth has moderated in the first two quarters of FY 2012-13 to 5.5 % and 5.3 % per cent respectively, it remains amongst the highest globally and is attributable significantly to the global economic environment.; Medium to long term prospects are good.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

India's foreign exchange reserves are close to $300 billion.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

Growth is driven to a significant extent by domestic consumption. India has a stable financial system and regulatory framework and strong demographic advantage.

Good growth prospects supported by ongoing economic liberalisation and strong domestic demand.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

India has vibrant, transparent and high-yielding capital markets and a strong and competitive private sector.  The country has seen a high growth in exports. A highly educated work force adds to its advantage.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

India's real GDP in 2005-2006 stoood at Rs 32,542 billion. It has risen to Rs 52,220 billion, a growth of 60%  in 2011-2012.

India's real per capita GDP stood at Rs 33,548 in 2005-2006. It rose to Rs 46,221, up by 38% in 2011-12.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

India's exports grew from $103 billion to $303 billion in 2001-12, 194 % higher compared to 2005-06.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

Remittances from workers stood at $28 billion in the calendar year 2006. It rose to $63.7 billion, a growth of 127 in the calendar year 2011.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

India's foreign direct investment inflow stands at $46.8 billion, 414 % higher compared to 2005-06.

India's foreign direct investment outflow stood at $25.8 billion, 323% higher compared to 2005-06.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

India is forecasted to grow at one of the highest rates in the next five years.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

The average percentage change in income has been next only to China and is forecasted to grow rapidly.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST
State Bank of India.

Savings and investment rates are among the highest in the world.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST
Nirmal Lifestyle, Mumbai.

According to the latest global consumer confidence findings (for the second quarter in 2012) from Nielsen, India ranks second in the overall consumer confidence index and has remained in the top 2 for the last 10 consecutive quarters.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST
Mumbai-Worli sealink.

India has launched major schemes to revamp its physical infrastructure. The 12th Plan envisages investment of $1 trillion on infrastructure projects; half of it from the private sector.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST
Canara Bank.

Indian Banks have been at the top among emerging market economies in terms of soundness as per the Global Competitiveness Report 2012- 13.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

Among emerging markets, India has one of the most favourable tax regimes, a very crucial factor for business growth.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

India compares well with the advanced economies in investor protection. Indian scores 6 on a scale of 1 to 10.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST
Bombay Stock Exchange.

India has a robust, transparent and stable financial market, which is speedily transforming to an increasingly liberalised market.

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What makes India an investment hotspot

Last updated on: January 31, 2013 09:26 IST

India has 21 stock exchanges that constitutes market for securities issued by government and the country's corporate entities

The net FII investment of $24.37 bn in equities and $6.64 bn in debt in CY 2012.

The National Stock Exchange and Bombay Stock Exchange are India's premier exchanges with an average daily turnover of Rs 100 billion.