Betting
on India
Jatin
Sheth lays down 10 important reasons to explain how India is emerging
as an economic powerhouse in terms of foreign investment
Today
India is a land of huge opportunities for global investors. The reform
process that the nation embraced a decade ago is now paying off. India’s
economy is sizzling and is one of the fastest growing in the world.
The country is witnessing a surge in foreign investment of late. Umesh
Kumar, Joint Secretary (Department of Industrial Policy and Promotion),
Ministry of Commerce and Industry, made a presentation at a Confederation
of Indian Industry conference on October 29, 2003. He listed the key
reasons why India is a great place to invest, how the nation has improved
after liberalisation, and what’s on offer for foreign investors.
YOU
NEVER HAD IT SO GOOD
•India
is the fourth largest economy in terms of purchasing power parity and
the tenth most industrialised economy.
•The country has posted a strong macro-economic performance.
•Political stability and broad consensus on reforms.
• Liberal and transparent foreign investment regime.
• Well-developed banking system.
• Vibrant capital market – National Stock Exchange being the
third largest and Bombay Stock Exchange fifth largest in terms of number
of trades.
• Strong and independent judicial system.
• Among the highest rates of returns on investment.
Profitability
of the US investments in India: 19.33
per cent in 2000 (according to the US Department of Commerce).
INCREDIBLE
SKILLS ON OFFER
• Strong pool of scientific and technical manpower: prowess of
IITs
and IIMs.
• A total of 255 companies from the Fortune 500 list get services
from India.
• Second-largest english-speaking population.
• Abundant, high-quality, cost-effective and competitive manpower.
There are more than 100,000 IT professionals added each year.
• India has been rated as the most attractive destination for offshore
business processing by global consultancy giant AT Kearney.
• IT industry $14 billion; growing at 50 per cent per annum; exports
$12 billion; 2008 exports target: $60 billion – this would be 35
per cent of India’s total exports.
• Job creation: 1 million direct and 2-3 million indirect.
HIGHLY
COMPETITIVE ENTREPRENEURSHIP
• Prevalence of foreign technology licensing – ranks number
one in the world.
• Pool of available scientist and engineers – the country
ranks number two in the world.
• Quality of management schools – ranks number nine.
• Firm level innovation – ranks number 12.
• Firm level technology absorption – ranks number 16.
• Company spending on R&D – ranks 32. (Source: Global
Competitiveness Report, 2003)
• India amongst the leading entrepreneurial hotbeds globally. (Red
Herring clubbed India with Israel.)
........CONTD
