India,world
biggest market for investment is the favorite destination for the most
of the developed nation in the 21st century.But the scenario was quite
different till 1990,when Indian market were totally dominated by the
closed economy,most of the industry were run on behalf of the
government. Serving people was the main idea by the government instead
of making profit,but the burden of Import over negligible export forces
Indian government to open its economy.
Thanks to the former finance minister and Prime minister of India, Mr Manmohan Singh who helped
Indian economy in successful averting the economic crisis , he as a
Finance Minister carried out several structural reforms
that liberalized India's economy .Since 1991 Indian market has
progressed so much that , today every nation look for an opportunity of
investment in the Indian market.
Current situation of Indian market.
New
government has framed different policies for reducing the time and
hustle free investment in India. Modi government always talk about less
paper work and more use of technology so that it reduces effort and
make investor comfortable while investing in India,they feel safe and
confident about their investment in India. The
Indian government’s favorable policy regime and robust business
environment have ensured that foreign capital keeps flowing into the
country. The government has taken many initiatives in recent years such
as relaxing FDI norms across sectors such as defence, PSU oil
refineries, telecom, power exchanges, and stock exchanges, among others.
Recent visit of India's new prime minister Modi to different nation has
attracted a lot of foreign investments across the whole world.
According
to Department of Industrial Policy and Promotion (DIPP), the total FDI
inflows soared by 24.5 per cent to US$ 44.9 billion during FY2015, as
compared to US$ 36.0 billion in FY2014. FDI into India through the
Foreign Investment Promotion Board (FIPB) route shot up by 26 per cent
to US$ 31.9 billion in the year FY2015 as against US$ 25.3 billion in
the previous year, indicating that government's effort to improve ease
of doing business and relaxation in FDI norms is yielding results .India
received the maximum FDI equity inflows from Mauritius at US$ 9.03
billion, followed by Singapore (US$ 6.74 billion), Netherlands (US$ 3.43
billion), Japan (US$ 2.08 billion) and the US (US$ 1.82 billion),during
FY2015. Healthy inflow of foreign investments into the country helped
India’s balance of payments (BoP) situation and stabilized the value of
rupee.
Some of the significant FDI announcements are as follows:
- Swedish home furnishing brand Ikea has made a long-term plan of opening 25 stores in India by making an investment worth Rs 12,500 crore (US$ 1.9 billion).
- Posco Korea, the multinational Korean steel company, has signed an agreement with Shree Uttam Steel and Power (part of Uttam Galva Group) to set up a steel plant at Satarda in Maharashtra.
- Germany-based ThyssenKrupp group is aiming to double its revenue from India to US$ 1 billion in next three-four years while the group’s elevator unit, ThyssenKrupp Elevator, plans to invest EUR 44 million (US$ 50.5 million) to set up a manufacturing plant in Chakan, Pune.
- Google plans to invest Rs 1,500 crore (US$ 234.3 million) for a new campus in Hyderabad which will be focused on three key areas — Google Education, Google Fibre broadband services and Street view.
- The Government of Karnataka has signed an agreement with the Taiwan Electrical and Electronic Manufacturers Association for the purpose of creating a Taiwanese electronic manufacturing cluster near the Bengaluru airport, with an investment expectation of Rs 3,200 crore (US$ 500 million).
India
is progressing at a faster rate but still it lacks in many sectors as
compared to other nations markets especially China. The problem is not
only be the deficiencies in policy and infrastructure but also the low
level of expenditure on marketing and branding of products, Global Value
Chain, Exchange rate policy and social politics. India need to address
these factors one by one and make sure , Indian market grows in such a
way that every section of Indian society can be benefited from that ,
development of ever section of society make nation prosperous and
healthy.
India has to go a long way and Indian
market must take Risk more than others think is safe. Care more than
others think is wise. Dream more than others think is practical. Indian market has lot of potential only need is to proper facility and motorization of Indian market.
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