Investment Opportunities in India

July 2, 2013

Investment opportunities for NRIs in the booming Indian Economy

Filed under: Investment Opportunities,Investment Options,NRIs Investment in India Harjeet @ 12:06 PM Tags: bank fixed deposits, business in India, Business Opportunities, FCNR Account, FDI investments, invest in real estate, Investment Opportunities in India, investment options for NRIs, non resident Indians, NRE Account, NRI investing in India, NRIs, NRO accounts, persons of Indian origins, PIO A stable, prosperous foundation is the primary requirement to grow ones business in India. India offers such a foundation. It provides rich business opportunities and markets to non-resident Indians (NRIs) and persons of Indian origins (PIO) for new products and services. It is one of the fastest, easiest and lucrative investment destinations in the world to set up business. India is the second-most profitable destination, according to UNCTADs World Investment Prospects Survey. To attract foreign investment in India, the Government has offered several facilities to the NRIs, PIO and overseas corporate bodies (OCBs).

Investment options for NRIs in India

National priority level and state-specific projects are being implemented across the country. These projects offer huge investment opportunities in India. The government is in fact, promoting Public Private Partnerships (PPPs) in many projects opening up new vistas in sectors such as infrastructure, education, healthcare etc.

The health care sector of India has also opened new investment opportunities for NRIs investing in India because of the rise in disposable income, penetration of health insurance and rising health related lifestyle challenges across demographics. The returns from the real estate sector in India have consistently been high and have even outperformed other investment options. The Government of India has created many policies and schemes to maximize investment options for NRIs/PIOs looking to invest in Indian real estate sector. Some of the most popular investment opportunities available to the NRIs and PIOs for investments in India are:

Non-Resident (External) Rupee (NRE) Accounts: NRE account may be in the form of savings, current, recurring or fixed deposit accounts. Such accounts can be opened only by the non-resident himself and not through the holder of the power of attorney. The interest rates on NRE Savings deposits shall be at the rate applicable to domestic savings deposits.

Non-Resident Ordinary (NRO) Rupee Account: NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts. Account should be denominated in Indian Rupees. Permissible credits to NRO account are transfers from rupee accounts of non-resident banks.

Bank Fixed Deposits: Bank failures are rare in India so bank fixed deposits are a very safe way to invest for NRIs investing in India. You know the rates up front so there is no uncertainty there. Taxes can eat into your returns though, especially if you are in the high tax bracket, but even then a fixed deposit (FD) that compounds quarterly and is done for a long maturity will yield well.

Foreign Currency Non Resident (Bank) Account FCNR (B) Account: FCNR (B) accounts are only in the form of term deposits of 1 to 5 years. All debits / credits permissible in respect of NRE accounts, including credit of sale proceeds of FDI investments, are permissible in

FCNR (B) accounts also. Account can be in any freely convertible currency.

Senior Citizens Savings Scheme (SCSS): It is a new investment opportunity in India for Senior Citizen. The account may be opened by an individual, who has attained age of 60 years or above on the date of opening of the account.

National Savings Certificates (NSC) IX Issue: This is another safe investment with decent returns. There is no maximum limit for investment and no tax deduction at source (TDS). Certificates can be kept as collateral security to get loan from banks.

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Investment options in Indian energy sector

Filed under: energy sector in India,Foreign investors,Investment Opportunities,Investment Options Harjeet @ 12:04 PM Tags: energy sector in india, foreign direct investments, Indian energy sector, invest in India, Investment Opportunities, Investment options in energy sector, investments in energy sector, investors in India, renewable energy sources, Union Budget Energy plays a key factor in determining the economic development of all countries. The Indian energy sector has witnessed a rapid growth in order to meet the demands of a developing nation. Areas like resource exploration and exploitation, capacity additions, and energy sector reforms have been revolutionized. Energy sector in India comprises of both non-renewable (coal, lignite, petroleum and natural gas) and renewable energy sources (wind, solar, small hydro, biomass, cogeneration bagasse etc.). India has retained its position in top five world wind energy markets in 2012. The country remained the third largest market for new turbines in 2012 with capacity addition of 2,441 megawatt (MW), according to World Wind Energy Report 2012. Worlds wind turbine capacity addition grew at 19 per cent to 44,609 MW.

Major investments in Indian energy sector

The investment climate is very positive for investors in India. The power sector has witnessed a surge of higher investment flows than envisaged. The Ministry of Power has set a target for adding 76,000 MW of electricity capacity in the 12th Plan (2012-17) and 93,000 MW in the 13th Plan (2017-22). Some of the major investments in the Indian energy sector:

National Aluminium Company Ltd (Nalco) has set up its second wind power plant in Jaisalmer district of Rajasthan with a capacity of 47.6 MW. The Rs 283 crore wind power project is being executed through Gamesa Wind Turbines Private Ltd

Coal India Ltd (CIL) plans to invest Rs 340 crore to embark on the second round of exploration at Mozambique coal blocks Jakson Power Solutions has won two new orders for installing solar rooftop systems in Bengaluru and Pune. The first order is to set up the 80 kilowatt peak (KWp) solar rooftop unit with a facility of battery back-up at Karnataka State Disaster Management Centre, Bengaluru, said Mr Sundeep Gupta, Joint Managing Director, Jakson Power Solutions

Vikram Solar plans to put up a 10 MW power plant at Tamil Nadu (TN) under the second phase of the states solar policy Mytrah Energy Ltd plans to acquire 59.75 MW of existing operational wind power assets in Tamil Nadu (TN) and Maharashtra. The company expects to have a capacity of 370 MW against previously anticipated 334 MW by 2013 wind season

Government Initiatives to promote investments in the energy sector

The Government has initiated several policies to attract investors in India to invest in the Indian energy sector. To accelerate capacity addition, several policy initiatives have been undertaken by the Ministry of Power. The National Electricity

Policy (NEP) in fact, stipulates power for all and annual per capita consumption of electricity to rise to 1,000 units by 2012. Some of the major investments taken by the Government of India to garner investments in the energy sector are as follows:

Foreign direct investments (FDI) up to 100 per cent is permitted under automatic route for projects of electricity generation (except atomic energy), transmission, distribution and power trading

Under the Union Budget 2013-14, the Government of India has approved a scheme for the financial restructuring of DISCOMS to restore the health of the energy sector in India

In a boost to power firms with plans to set up units in Special Economic Zones (SEZ), the Government has exempted them from the positive net foreign exchange (NFE) obligation applicable to regular units in such enclaves

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Investment options in India, one of the most attractive economies in the world
Filed under: Foreign investors,investment guide,Investment Opportunities,Investment sectors Harjeet @ 12:03 PM Tags: business investment opportunities, Business Opportunities in India, fdi equity, FDI Investment, foreign investors, Indian economy, invest in India,investment guide, investment sectors, non resident Indians, NRIs investment opportunities, Overseas Indians, P Chidambaram, Qualified Foreign Investors, Union Budget The Indian economy continues to grow at a good pace and holds a strong position. Indias economy is amongst the largest in the world on the basis of purchasing power parity (PPP). It is today one of the most attractive destinations for business investment opportunities with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. During April-January

2012-13, India received foreign direct investments (FDI) worth US$ 30.82 billion while FDI equity inflows during January 2013 stood at US$ 2.16 billion, according to latest data released by the Department of Industrial Policy and Promotion (DIPP). India is the third-most attractive destination for FDI in the world. Indian markets have significant potential and a favorable regulatory regime for foreign investors, according to a survey titled World Investment Prospects Survey 20122014 by UNCTAD. We are keen to see FDI investment to surge in India and to that end, a favourable business climate will be helpful in going forward. We are encouraged to see there is a continued path towards fiscal consolidation, according to Ms Christine Lagarde, Chief, International Monetary Fund (IMF). Changes made by the Mr P Chidambaram, Union Minister for Finance, Government of India, in the Union Budget 2013-14 can greatly benefit high net worth individuals looking to invest in India, where returns on investments are higher than in any other market.

Key sectors in India where foreign investors can invest

India has become a trillion dollar economy with a self-sufficient agricultural sector, a varied industrial base and a well-established financial and services sector. There are numerous sectors that offer lucrative business opportunities in India. Some of the key investment sectors are:

Aerospace & Defence Automotive Banking Biotechnology Information Technology Insurance Power Real Estate

Retail Telecommunications

Government Initiatives in supporting business investments opportunities in India

In order to enable investors to have the complete benefit of available business opportunities in India, the Government of India has taken following initiatives:

The Government of India has relaxed in expense ratios for mutual funds and the prospects of higher FDI limits in insurance sectors could unlock huge opportunities in these investment sectors.

The Government has allowed Qualified Foreign Investors (QFIs) individuals, groups or associations to invest directly in Indian equities and bond markets.

To encourage the micro, small and medium enterprises (MSMEs), the Government of Tamil Nadu (TN) has announced a special component package, which includes creation of an additional land bank for setting up new industrial estates in the state, increase in subsidy for machinery purchases and creation of a single window clearance committee to facilitate speedy approvals for industrial estates, said Ms J Jayalalithaa, Chief Minister of Tamil Nadu (TN).

Investment facilitation in India

The Ministry of Overseas Indian Affairs in partnership with Confederation of Indian Industry (CII) has set up an Overseas Indian Facilitation Centre (OIFC) as a notfor-profit-trust, to facilitate non-resident Indians (NRIs), overseas corporate bodies of overseas Indians and non-resident Indians who want to invest in India. In order to ease the process for foreign investors to invest in India, OIFC has developed an online toolkit Investment Guide to India. The toolkit serves as a simple, practical and stage-wise investment guide for the non-resident Indians wanting to invest in India.

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Investment opportunities in Indian states

Filed under: Investment Opportunities,investment opportunities in India,Investment Options,Investment options in India Harjeet @ 12:00 PM Tags: Doing business in India, FDI in Gujarat, FDI in Kerala, invest in Gujarat, invest in Kerala, investment in India, investment options for NRIs,Investment options in Indian States, investment sectors, investments in Gujarat, investments in Kerala, NRIs investment opportunities India is one of the oldest civilisations in the world with diverse cultural heritage. It is divided into twenty eight States and seven Union Territories (UT). Each and every Indian states and UTs has a unique demography, history, language etc. which provides various investment opportunities. These states/UTs are blessed with large number of tourist places beautiful landscapes, wildlife and forests, hills, plateaus, valleys, monuments, forts, palaces, temples, etc. Tourism is the major source for investments in Kerala. States and UTs of India are also gifted with distinct inherent strengths from abundant supply of mineral resources and large forest reserves to the availability of good fertile lands, which are suitable for growing variety of agricultural and horticultural crops. Several global majors are present in these States which brings large investments into the country. These companies/ industries are confined to iron and steel, cement, textiles, agro-processing, mineral-based industries, drugs and pharmaceuticals, chemicals, electronics, automobiles, etc. Pharmaceuticals and automobiles are the major source of investments in Gujarat. Information technology (IT) is now being recognized as an essential part of the economy by the various State Governments, thereby attracting new players into the market. IT revolution is committed to provide good governance that ensures transparency, reduction in transaction costs, efficiency and citizen centric delivery

of public services. Therefore, the Government is making all efforts to facilitate the growth of such industries and promote overall development of the economy.

Major investment states of India

Haryana: Due to its strategic location, Haryana has been recognised as a businessfriendly State. Panipat, Rohtak, Gurgaon, Faridabad and Sonepat have a special potential for accelerated socio-economic development. Land and water are the important resources of the State, making it an agriculturally rich State. Large number of food grains and horticultural crops are produced, by using available irrigation facilities. Kerala: The State of Kerala constitutes one of the most advanced society of the country. Its literacy rate is the highest among the Indian States. The State has several advantageous features pro-active administrative set up, simple and transparent procedures for investment, rich natural resource base, educated and hardworking manpower, including the highest density of science and technology personnel, etc. The Government has taken several policy measures and incentives for attracting investments in Kerala. Punjab: Punjab is a land of numerous opportunities which are embedded in its advantageous position. These include:

Simple and responsive administrative set-up Educated and professional work force with abundance of skilled workers Strong agricultural and industrial base Efficient infrastructural set up including transportation, telecommunication, stable and cheap power

Gujarat: Gujarat is the leading industrialized State of India. It houses a number of multinational corporations, private sector companies, public sector enterprises and a large number of medium and small scale units. It is a manufacturing powerhouse with world-class production capabilities. Textiles, petrochemicals, pharmaceuticals

are some of the few sectors which attracts investment in Gujarat. The State is also known for its entrepreneurial spirit as well as robust social and physical infrastructure. Andhra Pradesh: Andhra Pradesh is the resourceful land of minerals which includes coal, oil and natural gas, bauxite, limestone, gold, diamonds and much more. It is an agriculturally-prosperous State, endowed with fertile land, water and conducive agro-climatic conditions. It is among the largest producers of food grains, fruits, vegetables, cotton, maize, dairy and poultry products in the country. Leave a Comment
June 3, 2013

India: An attractive destination for NRIs to invest

Filed under: Investment Consultants,Investment Opportunities,Investment Options Harjeet @ 4:50 PM Tags: Fixed deposit schemes, foreign investors, Indian economy, Indian investment market, investing in India, Investment Consultants, Investment Opportunities, investment options for NRIs, investment options in india, long-term investments, low risk investments, Public Provident Funds,Purchasing Power Parity, Savings bank account, short-term investments Indias economy is amongst the largest in the world on the basis of purchasing power parity (PPP). It is today one of the most attractive destinations for investment opportunities with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. The Indian investment market offers a plethora of investment avenues. However the asset class that an investor chooses has to primarily do with the risk appetite of the investor. Every investor looks for a certain element of safety before investing a kind of assurance that even in the case of unfortunate market events s/he at least gets back the capital invested.

A higher level of safety comes with a cost: investors will have to compromise on the returns front, as one cannot expect higher safety with higher returns. Returns offered by low risk investments will be low to moderate i.e. up to 9 per cent and in some cases the post-tax returns would be even lesser. It would hence be ideal if an investor can have a mix of asset classes with varying degrees of risk, to address safety and returns.

Investment options in India for NRIs

If youre thinking about investing in India to make money especially into real estate, you need to first determine your financial goals. Do you need to make money quickly, invest for your childrens college fund, or build wealth for your retirement? Once you determine your financial goals, you need investment consultants who helps investors with their long-term investment planning. A consultant, unlike a broker, does more in-depth work on formulating clients investment strategies, helping them fulfill their needs and goals. The idea behind a consultant is that they be part of the clients investment strategy for a long period of time. The investment consultant job is to actively monitor the clients investments and continue to work with the client as goals change over time. Some of the major investment options for NRIs are:

Short-term avenues

Savings bank account: This is the primary savings product that anyone would have; however it provides low returns of 4 to 5 per cent. Any funds in this account makes sense only if the balance is sufficient to cover needs that are supposed to arise within a month as it offers highest liquidity.

Fixed deposit schemes (Bank FD): Bank FD comes with a fixed tenure of investment which acts like a lock in period. While early

withdrawal is possible it entails a penalty. It is essential to plan this investment since it comes with a fixed tenure/lock in.

Long-term avenues

Post office savings schemes: This is one of the favourite and most sought after among investors who believe in regular savings in the form of recurring deposits. There are other investment opportunities like National Savings Certificate, PO time deposit which are similar to FD and also offer tax benefit u/s 80 C if the tenure is 5 years.

Public Provident Funds (PPF): PPF offers multiple benefits of good returns @ 8.8 per cent, low risk, tax free interest and tax benefit u/s 80 C. However liquidity in this avenue is low, as one can start withdrawing only from the seventh financial year onwards and has to adhere to certain limitations while withdrawing.

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Growth of tourism in India

Filed under: Business in India,Indian service industry,invest in India,Tourism in India Harjeet @ 4:49 PM Tags: FEEs, Foreign Exchange Earnings, foreign tourist arrivals, FTAs, Indian economy, Indian hospitality sector, Indian service industry, invest in service industry, investing in tourism, investment strategies, Tourism in India Tourism refers to the activity of visitors. A visitor is a traveler taking a trip to a main destination outside his/her usual environment for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited, according to UN World Tourism Organisation (UNWTO).

Tourism is an important social and economic phenomenon in many countries. It is a key driver of socio-economic progress through the creation of jobs and enterprises, infrastructure development and the export revenues earned.

Indian tourism industry

Compared to many countries, Indian service industry has the advantages of possessing a rich and diverse range of unique tangible and intangible cultural, natural and man-made tourism resources, many of which are world class in quality. Indias great competitive strength from tourism point of view is its ancient and yet living civilization that gave rise to four of the worlds great religions and philosophies, and brought travelers and trade millennia ago. The rich natural and rural landscape of India is punctuated with the built heritage of its ancient past and modern structures. Indias contacts with other civilisations is reflected in the rich cultural diversity of its people through its languages, cuisine, traditions, customs, music, dance, religions practices and festivals, its holistic healing traditions, art and craft.

Overview of Indian tourism sector

Today, tourism is the most vibrant among the Indian service industry and has a strong hold on the economy. The sector contributes 6.23 per cent to the national gross domestic product (GDP) and 8.78 per cent of the total employment in India. Moreover, India stands 42nd in the world rankings in terms of foreign tourist arrivals (FTAs) in the country, according to a report titled Competitiveness of Tourism Sector in India with Selected Other Countries of the World by Ministry of Tourism. The World Travel and Tourism Council (WTTC) named India as one of the fastest growing tourism industries for the next 10 to 15 years. FTAs have shown a growth of 2.8 per cent in March 2013 over March 2012 while the growth rate in Foreign Exchange Earnings (FEEs) from tourism in India stood at 21 per cent over the same period.

The Visa on Arrival (VoA) Scheme of the Government of India has registered a growth of 63 per cent during March 2013. A total number of 2,107 VoAs were issued last month as compared to 1,287 VoAs issued in March 2012.

Investment options in Indian tourism industry

Strong growth in per capita income in the country is driving tourism in India. A shift in demographics with rising young population (coupled with changing lifestyles) is leading to greater expenditure on leisure services. The tourism policy of Government of India aims at speedy implementation of tourism projects, development of integrated tourism circuits, special capacity building in the hospitality sector and new marketing strategies. Leave a Comment
May 16, 2013

Business Incubation in India

Filed under: Business in India,Business Opportunities,NRIs,overseas Indian investors.,overseas investors Harjeet @ 3:51 PM Tags: business incubation centers in India, Business Incubation in India, Business Opportunities, Business opportunities for NRIs, Indian economy,Invest in Indian Markets, investing in India, Investment Opportunities, investment sectors, non resident Indians, NRIs investment opportunities, NRIs opportunities, overseas foreign investors, Overseas Indians Indian market today is reshaping the worlds economy. Indias gross domestic product (GDP) has crossed the trillion dollar mark in 2007 and is currently in 4th position (PPP) after US, China and Japan. Investment in almost every sector (Education, Food, Energy, Health Care and Retail) of the Indian economy has a promise of high returns that has caught the attention of investors and businesses across the world. India offers a stable, prosperous foundation to grow ones business. It offers rich business opportunities and markets to non-resident Indians (NRIs) for new

products and services. It is one of the fastest, easiest and lucrative investment destinations in the world to set up business. India is the second-most profitable destination, according to UNCTADs World Investment Prospects Survey 2010-2012.

Business Incubation in India

Business incubation is a dynamic process of business development. Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Successful completion of a business incubation program increases the likelihood that a start-up company will stay in business for the long term. Incubators usually also offer companies rental space with flexible leases, shared basic office services and access to equipment all under one roof. Overseas Indians who wish to enter a business incubation program must apply for admission. Acceptance criteria vary from program to program, but in general only those with feasible business ideas and a workable business plan are admitted.

Startup Incubation Centers in India

Startup Incubation holds significant importance in a country like India where entrepreneurs by the score are launching new setups and changing the game of business by minutes. For the uninitiated, business incubation programs or centers provide support functions, mentorship and resources to individual entrepreneurs or entrepreneurial setups. This enables them to get all the expert advice and technical guidance that they need to survive for a longer time, unlike most other entrepreneurial ventures that fizzle out within a few months of their launch. Almost every other prestigious B-school today houses an incubation center so that business opportunities can be nurtured from their very source. Currently there are about 100 incubation centers supported by the Indian STEP and Business

Incubator Association (ISBA) which is the apex Indian professional body supporting business incubators. Private incubators are a handful, but gradually growing. These numbers are expected to double within the next two years. Some of the good business incubation centers in India:

Centre for Innovation, Incubation and Entrepreneurship (CIIE), IIM Ahmedabad AngelPrime Indian Angel Network (IAN) Technopark Technology Business Incubator (T-TBI)

Long term projects are projects of national importance that will help in Indias development. These platform showcase investment opportunities in projects that require funding and will also help you to contact relevant institutions undertaking the projects. This information will be updated regularly to generate fresh investment opportunities for the overseas Indians. Leave a Comment

Attractive investment opportunities for NRIs in India

Filed under: Business in India,Business Opportunities,FDI Harjeet @ 3:49 PM Tags: ARCs, asset reconstruction companies, business in India, Business Opportunities in India, Direct Investment, Education in India, Foreign direct investment, foreign investors, Indian automobile industry, Indian automotive sector, Indian tourism industry, investing in India, Investment Opportunities, investment opportunities for NRIs, NBFCs, non-banking financial institutions India is clearly becoming a more and more important player on the world stage in G20 context, in terms of its role in the global economy. It is very useful for us to exchange ideas and build the basis for future collaboration, according to Mr Ben Bernanke, Chairman, US Federal Reserve.

India is the fifth best country in the world for dynamic growing businesses, according to the Grant Thornton Global Dynamism Index. The index gives a reflection of how suitable an environment it offers for dynamic businesses. In addition, Indias economic confidence registered an increase of 8 points, to reach 68 per cent in August 2012 as compared to the previous month, according to the Ipsos Economic Pulse of the World survey. This makes India the fourth most economically confident country in the world. India is also expected to be the second largest manufacturing country in the next five years, followed by Brazil as the third ranked country, as per Deloitte Touche Tohmatsu Ltd (Deloitte). The Government of India has relaxed foreign direct investment (FDI) regime in sectors including multi-brand retail, single-brand retail, commodity exchanges, power exchanges, broadcasting, non-banking financial institutions (NBFCs) and asset reconstruction companies (ARCs) in 2012 to attract more and more direct investments.

Business Opportunities in India

Mr Mahmood Al Hashemi, Director General of Ajman Free Zone Authority (AFZA), UAE will tour India and address a series of seminars and press conferences in Mumbai, Delhi and Ahmedabad this month. This high profile visit to the Indian subcontinent will be to initiate and build a long and lucrative means of economic cooperation between the two countries. This will provide huge opportunity to young entrepreneurs doing business in India. Heres a list of 5 good opportunities non-resident Indians (NRIs) can look at:

Software: Indias software and services exports are likely to rise with export revenue growth projected at 13 to 15 per cent. With one of the largest pool of software engineers, NRIs can set higher targets in hardware and software development

Tourism: Tourism is a booming industry in India. With the number of domestic and international tourists rising every year, this is one hot sector NRIs must focus on. India with its diverse culture and rich heritage has a lot to offer to foreign tourists. Beaches, hill stations, heritage sites, wildlife and rural life, India has everything tourists are looking for

Automobile: India is now a hot spot for automobiles and autocomponents. A cost-effective hub for auto components sourcing for global auto makers, the automotive sector is potential business in India for foreign investors

Textiles: India is famous for its textiles. Each state has its unique style in terms of apparels. India can grow as a preferred location for manufacturing textiles taking into account the huge demand for garments. Places like Tirupur and Ludhiana are now export hubs for textiles. A better understanding of the markets and customers needs can boost growth in this sector and attract direct investments

Education and Training: There is a good demand for education and online tutorial services. With good facilities at competitive rates, India can attract more students from abroad. Unique teaching methods, educational portals and tools can be used effectively to make the sector useful and interesting

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May 3, 2013

Scenario of pharmaceutical market in India

Filed under: invest in India,Investing in India,pharmaceutical industry in India Harjeet @ 10:01 AM Tags: FDI policies, Foreign direct investment, healthcare sector, Indian pharma sector, investing in India, Investment Opportunities, investment options in Indian healthcare, opportunities in Indian Healthcare, Overseas investors, pharma sector in India, pharmaceutical industry in India,pharmaceutical sector in India

The pharmaceutical industry in India is most progressive and advanced among all the developed and developing countries. The industry has provided great employment opportunities to thousands of people, apart from contributing greatly towards the Indian economy. Today, India is among the top five pharmaceutical emerging markets in the world. The market is expected to grow at a compound annual growth rate (CAGR) of 1417 per cent over 2012-16. The total revenues of the market stood at US$ 11 billion and are estimated to be US$ 74 billion by 2020.

Growth in the sector

Pharma sector in India is growing at a rapid pace, marked by a number of mergers and acquisitions (M&A) and growth in foreign expenditure. The sector is going to be a major area of focus in the coming years as Indian medicines are increasingly becoming popular in many parts of the world because of the cost effectiveness and easy availability. The manufacturing cost of Indian pharma companies is up to 65 per cent lower than that of US firms and almost half of that of the European manufacturers.

The domestic pharmaceutical market is expected to register a strong double-digit growth of 13-14 per cent in 2013 on back of increasing sales of generic medicines, continued growth in chronic therapies and a greater penetration in rural markets.

The growth of healthcare sector also provides huge opportunities for investing in Indias pharma space. The growing network of private and public hospitals in the country generates a huge demand for industrial cleaning equipment, waste management, hygiene products and laundry solutions.

Pharmaceutical exports
The Ministry of Commerce has targeted Indian pharma sector exports of US$ 25 billion by 2014 at an annual growth rate of 25 per cent.

Last year, the industry registered exports of US$ 13 billion at a growth rate of 30 per cent, as per Dr P.V. Appaji, Director-General, Pharmaceutical Exports Council of India (Pharmexcil). The Government has also planned a Pharma India brand promotion action plan spanning over a three-year period to give an impetus to generic exports.

FDI inflows
The cumulative drugs and pharmaceuticals industry in India attracted foreign direct investment (FDI) inflows worth US$ 10,308.75 million during April 2000 to February 2013, according to the Department of Industrial Policy and Promotion (DIPP)

Recent initiatives
The Department of Pharmaceuticals has prepared a Pharma Vision 2020 document for making India one of the leading destinations for end-to-end drug discovery and innovation and for that purpose, the department provides requisite support by way of world class infrastructure, internationally competitive scientific manpower for pharma research and development (R&D), venture fund for research in the public and private domain and such other measures. Pharmexcil has removed the need for overseas investors to get a no-objection from their joint venture (JV) partner before venturing out on their own or roping in another local firm. This will promote the competitiveness of India as an investment destination and be instrumental in attracting higher levels of FDI and technology inflows into the country.

FDI policies

FDI, up to 100 per cent, under the automatic route, is permitted for green field investments (when a company establishes a subsidiary in a new country and starts its own production) in pharmaceutical sector in India

FDI, up to 100 per cent, under the government approval route, is permitted for brown field investments (when company purchases an existing plant or firm, rather than construction of a new plant)

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Investment options in Indian education sector

Filed under: education sector in india,invest in education Harjeet @ 9:56 AM Tags: economic growth, Education in India, Education sector in India, Foreign direct investment, Indian economy, Indian Education Industry, Indian education sector, invest in India, Investment in education in India, Investment Opportunities, Investment Opportunities in Indian Education Sector,NRIs Invest in Indian Education, NRIs Investment, NRIs investment options Education is the vital key for modernization. The importance of education can be realized from the fact that all modernized societies are emphasizing on universalization of education as a mode for sustained economic development. There is a huge demand for upgradation of education sector in India, as the country is expected to have a surplus of 47 million people in the working age group by 2020. The consumption trends predict that an urban India is spending nine per cent of his wallet on education while the rural consumer spends only six per cent.

Education in India
In the past few years Indian education sector has witnessed a series of changes, which resulted in a significant increase in market share of the education industry. With economic growth and enhanced technology it has become necessary to develop the Indian education sector. Funds are a major concern in the market to meet this demand. The Government of India has taken many initiatives to attract investments from non-resident Indians (NRIs) for the development of education infrastructure. The Government has also opened the doors for foreign universities by passing Foreign Educational Institution (Regulation of Entry and Operation) Bill, which will help in bringing foreign investments in education in India and shaping the education industry structure specially pertaining to higher education.

Growth drivers of Indian education sector

Demographic advantage
o

As per Census 2011, 35.3 per cent of the Indian population is under the age of 14

Increasing awareness
o

Increase in awareness towards education as a priority and essential tool for career growth Increase in job opportunities and salaries offered making investment in education in India prudent

Human Resource driven economy

o

Increase in the demand for an educated skilled workforce by services sector Share of service sector in GDP increased from 30% in 1950 to 55% in 2007

Technology aided delivery

o

Increase in penetration of technology resulting in virtual learning and education delivery

New employment avenues

o

Newer employment avenues such as knowledge process outsourcing (KPO), legal process outsourcing (LPO), retail, aviation, animation etc. demanding highly skilled manpower

Investment opportunities in Indian education sector

Education sector in India is also considered as one of the major areas for investments, as the entire education system is going through a process of renovation, according to a report Emerging Opportunities for Private and Foreign Participants in Higher Education by PricewaterhouseCoopers (PwC). The Government of India has allowed foreign direct Investment (FDI) up to 100 per cent through the automatic route in the education sector.

According to the Indian Higher Education Real Estates New Emerging Sector, a study by real estate consulting firm, DTZ, the Indian higher education sector needs 5,550 million sq ft of additional educational space (excluding support services like hostel, cafeteria, recreational facilities) to meet the Government of Indias 30 per cent Gross Enrollment Ratio (GER) in higher education target by 2020. The sky rocketing economic growth will require huge number of engineers and management graduates which mandate infrastructural development to address the demand. Entry of foreign universities would not only intensify the competition, but also provide an international platform to the Indian students where they can achieve quality learning.