Bridging the gap: India & US Introduction: Ravi Thomas
Why we are in here• The purpose of my presentation is to provide interested US companies with an introduction to the more important aspects of doing business and investing in India.
India Today• Indian economy has moved from closed to open economy• Economic reforms of 1990s unleashed India’s huge growth & development potential impacting all aspects of India’s society• Today India is a $ 1.3 trillion economy• India largely self sufficient in agriculture sector• India has diversified industrial base• India possesses stable financial and services sector• India has many world-class & globally competitive businesses.• India’s strength in IT & ITES is well known.
India & World Economy• Increasing integration of the Indian economy with global economy reflected in sudden changes in inflation rate, growth rate, exchange rate, and capital markets• India felt impact of global financial crisis less than others• India was among the first economies to revive from the crisis, led by strong domestic economy fundamentals.• Real GDP growth has averaged 8.8%(2003-2008), 6.7% (2008- 2010) rising to 8.6 % (2010-11)• World Bank projects steady GDP growth of +8% p. a. till 2015
India: Investment Destination• Attracted significant investor attention in recent years.• Investor perceptions of market potential changing• Economic growth projected to surpass 8% annually• Indian middle class trebling over next 15 years• Corresponding impact on disposable income & domestic demand• Domestic demand likely to grow by compound rate of 9.2% per year between 2010- 2030.• This puts India in a good position to attract an increasing proportion of global foreign direct investments (FDI).• Many foreign corporations have realized this;• They are reinforcing their positions in India in order to seize the opportunity.
Why invest in India?• India has: – Highly skilled & trained young manpower – English speaking labor well versed with Western culture.• India’s size & growth potential make India attractive market• India’s demographic dividends: – rapidly increasing middle-income consumer class drives market demand• Most compelling investment reason – India provides a good return on investment.• Growing investor confidence: – Many foreign investors investing in India & increasingly exploring opportunities of its market• Given its strategic strengths and rapidly growing economy, India serves as an ideal destination for foreign investors• India: one of the most transparent and liberal FDI regimes among emerging economies•
Few Constraints to Investment• India is a significantly open investment destination• Foreign ownership allowed for all except a few sensitive areas of the economy, like lottery etc• Foreign investment can be in the form of a direct investment by an entity (FDI) or can be in the form of an institutional investment (FII)• Written rules; independent judiciary
An Important Consideration• FAQ: Are the investments and profits earned in India repatriable?• Answer: All foreign investments are freely repatriable (net of applicable taxes) except in cases where: – the foreign investment is in a sector like Construction and Development Projects and Defense wherein the foreign investment is subject to a lock-in-period; and – NRIs choose to invest specifically under non-repatriable schemes, not applicable to foreigners• Further, dividends (net of applicable taxes) declared on foreign investments can be remitted freely through an Authorized Dealer bank.•
Bridging India –US Trade & Commerce• The Indian market potential is undoubted• India offers good ROI & growth to foreign entrepreneurs• Likewise imports & exports also growing• Many sectors do not need special licenses; DGFT clearance is sufficient• I will now answer questions to clear your doubts Thank you