2. 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.
3. 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.
4. 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
5. 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.
6. 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
•
7. 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
8. 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.
•
9. 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
