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Potential for Investment in India

 
  • India presents a vast potential for overseas investment and is actively encouraging the entrance of foreign players into the market. India is also one of the few markets in the world which offers high prospects for growth and earning potential in practically all areas of business
  • Huge investment potential exists in the Media and Entertainment industry, which is all set to more than double its revenues and touch US$ 23.34 billion (Rs. 100,000 crore) by 2011 at the CAGR of 18 per cent.
  • The Indian pharmaceutical industry is another promising sector of the Indian economy. India holds fourth position in terms of volume and thirteenth position in terms of value of production in pharmaceuticals. It is estimated that by the year 2010, the Indian pharmaceutical industry has the potential to achieve over Rs. 1,00,000 crore in formulations and bulk drug production.
  • Steel sector also holds huge investment potential as the government aims to achieve production level of 110 million tonnes by 2019-20.
  • According to the Union Commerce and Industry Minister, retailing is a sunrise sector. Organised retail sector is expected to generate 10 to 15 million jobs over the next 5 years, and that the value of the organised retail sector in India by 2010 would be around Rs.2,00,000 crore or US $ 45 billion.
  • The Infrastructure sector including roads, power, railways, aviation require an enormous amount of $320-350 billion by 2012 to raise rate of investment in key areas at par with economic growth and 20 per cent of which will have to be chipped in by the private sector. Huge private sector funding is required since public investment in the area is constrained by limitations on the government-borrowing programme imposed by the FRBM Act and demand for investment by other growing sectors of the economy.
  • The Indian real estate industry is poised to emerge as one of the most preferred investment destinations for global realty and investment firms. The industry is poised to experience a landscape change and the key trends that will shape the business in the next three to five years are enlargement of project size with focus on product differentiation and quality, expansion in geographical coverage from metros to smaller cities, shift from regional developers to national developers, movement of construction giants up the value chain and the emergence of strong real estate capital market. According to a study done by FICCI and E&Y, the demand for office space is set to expand significantly in the next few years. The demand will primarily be driven by the IT and ITeS industry, which according to the Ernst and Young estimates would require an additional office space of more than 367 million sq. ft. up to the year 2012-13. The domestic real estate sector may emerge a US$ 50 billion industry by 2010 and prove one of the most attractive sectors for foreign investments. An industry research by financial services firm India Infoline (IIL) said the real estate sector, which was growing at 33 per cent CAGR (compound annual growth rate), could be a $50 billion industry in the next four years, if the institutional participation supported its growth.
  • Huge investment potential exists in the upcoming Knowledge Process Outsourcing (KPO) sector. According to the Ministry of Communication and IT, India is likely to capture around 15 per cent of the over US$ 54 billion dollar knowledge process outsourcing (KPO) industry worldwide by 2010.
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