India is one of the fastest growing economies in the world and is projected to become the third largest by 2020. It offers immense growth potential and favorable regulations to attract foreign investment across sectors. Recent government initiatives like Make in India, Digital India, and Ease of Doing Business further aim to transform India into a global manufacturing hub and improve its business environment. India also has one of the largest investor bases in the world and foreign institutional investments have increased, supported by a stable government focused on economic development.

1. REASONS TO INVEST IN INDIA
India is one of the fastest growing economies in the world today, India has
sustained recent global downturn and also emerged as one of the leading nations in
terms of GDP growth rate and FDI inflows. Economists predict that by 2020, India
will be the third largest economy in the world. Indian markets have immense
potential and offer prospects of high profitability and a favorable regulatory regime
to attract investors. Further, with the new initiatives like Make in India, Ease Of
Doing Business In India, Digital India, Startup India, Smart Cities, etc. the Indian
Government further intends to attract the Non Residents to make financial
investment in India. The ambitious ‘Make in India’ campaign launched on 25th
September 2014 aims at turning the country into a global manufacturing hub by
eliminating the unnecessary regulations and time bound project clearances. Some
of the key answers to the question “Why Make In India?” are as follows:
Large presence of FIIs in the Indian capital market with over 451 FIIs and 38
foreign brokers registered with SEBI.
Placed amongst the most transparent & mature markets in the world.
The world’s third largest investor base only after U.S.A and Japan.
Government of India has emphasized on the importance of ‘Ease of Doing
Business’ and it is a major pillar of ‘Make in India’ initiative. It is working
H K Chhabra & Co. | CA in Dwarka, New Delhi, India | HKCIndia.com

2. extensively on improving India’s rank in the World Bank Group’s Doing Business
Study.
Also in a presentation in Hong Kong by CLSA’s Chris Wood, who is recognized
as the one of the best strategists in Asian markets. During his speech, Wood
maintained that India has been and continues to be his favorite market in the
region. Following is the extract from his speech:
I have, in fact, allocated 41 percent of my long only portfolio to India… I am not
going to pull out because I am viewing India as a five-year story given the fact that
Modi has been elected for five years. Modi is the most pro-business, pro-investment
political leader in the world today.
The above mentioned factors contributed to the fact that India best destination to
invest right now and the world has its eye on India.
Further, the Government of India has permitted foreign investment in almost all
sectors with a few exceptions, for instance in sectors such as atomic energy, lottery
business, etc. where FDI is completely prohibited. For other sectors, FDI is either
100% permitted or partially permitted. In the permitted sectors, subject to sectoral
caps, FDI may be via 2 routes:
1. Automatic route or
2. Government route i.e. where prior approval of Government of India is
required.
In case of any query, mail us at ​Info@HKCIndia.com . This article was originally
published @ Knowledge Centre of HKCIndia.com on 17th Februray 2017. Link to
the original article Reasons to Invest In India By H K Chhabra & Co. is
http://hkcindia.com/reasons-to-invest-in-india/
H K Chhabra & Co. | CA in Dwarka, New Delhi, India | HKCIndia.com