Best Investment in India

Globally, India is one of the most preferred destinations for foreign investment by renowned companies. Best investment in India options are varied, only the investor will have to carefully study the heterogeneous nature of the Indian market before investing his money. There are various elements within the country that work in its favor in attracting global investors. India is the seventh largest country in the world and the second most populous country besides having the fourth largest economy in terms of PPP.

The government has also done its bit in attracting overseas investors to India, by undertaking liberalized economic policies. The Indian economy is ideal for big, medium and small companies located abroad. Due to the availability of a huge number of technical and managerial skills in the country, these companies can join hands with Indian enterprises and get the desired results. The low cost of labor is another factor that attracts best investments in India.

Hurdles for investment in India



It goes without saying that investors will face hurdles while setting up their business in the country. The country's infrastructure has had to bear the brunt of the rapid growth that the country has witnessed in the last few years. The prospect of further growth can put a strain on the existing facilities. Some of the problems that investors in India could face consist of improper road conditions, shortage of power supply, a mismatch in the port traffic capacity and low telephone and internet penetration. Bureaucratic hassles may also sometimes put a spanner in the prospect of best investment in India. Undertaking a proper market study by the investor will surely help them in making better use of the available resources.

FDI in India:



FDI or Foreign Direct Investment is one of the best investments in India options. In India FDI is permitted through financial collaborations, through capital market, through joint ventures and technical collaborations and through private placements or preferential allotments. Foreign Direct Investment is completely forbidden in the sectors of coal and lignite, railway transport, arms and ammunitions, atomic energy, mining of iron, zinc, chrome, manganese, gypsum, copper, sulphur, gold and diamond. Up to 100% FDI is allowed under the automatic route in most of the sectors. Foreign investment policies are reviewed on an ongoing basis and newer measures for the liberalization of the policies are undertaken as and when required.

Best Investment options in India:



India is surely emerging as a major force in the global market. Some of the merging sectors in the India market include chemicals, apparels, pharmaceuticals, auto components and jewelry. Besides the ones mentioned, there are also other sectors where Indian companies are excelling in their respective product categories. The best investment in India would be that investment which will bring in technology, make a contribution to the economy and bring about a positive change in the living standards of the people within the country and outside.

Best sectors to invest in India



Power Sector

Energy over the years has proved to be one of the most important contributors towards the overall economic welfare of a country. Investing in the power sector in India is currently one of the best options. India is a country with a large population which is also growing at a rapid rate so the need for more and more power or energy generation is increasing continuously. The Indian government in its 11th Five Year Plan has proposed electricity for all by the year 2012. Since the demand for electricity is growing enormously investors have ample opportunities to make hay while the sun is shining. Since it is a sector that is currently in demand the investors can put their money on both public and private sector power companies.

Food Processing

The food processing sector in India is yet another excellent platform for investment. Due to the growth in the economy and the rise in the standard of living of the Indian middle class there is a subsequent rise in the demand for processed food items. The increase in the demand for processed food is also due to the rising percentage of working couples in the country.

The next few years as forecasted by industry experts will witness a rapid growth in ready-to-eat food products spanning over products like , ready-to-cook meals, health drinks, readymade Aata, (flour), fruit juices, noodles and pastas, etc. According to industry estimates, the food industry in India is expected to go upto to $280 billion by the end of 2015.

Banking & Finance

The banking and financial sector in India over the years has improved by leaps and bounds. Today it is a top investment avenue. Even the recent economic downturn could not impact the sound Indian banking sector much. It is only after the government opened up the financial sector in the early nineties that the banking industry in India received a boost due to the influx of the private sector banks which took banking to a different level in India. Looking at the progress of the private banks the public banks which were lagging behind also pulled up their socks and started introducing the latest banking facilities and technologies. The banking industry is one of the major reasons behind the success of the nation's economy.

Infrastructure

The one area where India still has miles to go is its infrastructure. However considering the fact that India is an emerging economy there is still much to look forward to as far as infrastructural development is concerned. The economic development of a country to large extend depends on the condition of the infrastructure of that country. Proper infrastructure does not only propel the development of the nation but it also generates employment. The term infrastructure encompasses rail, transport, ports and road, aviation, irrigation needs, mining and construction. Investing in this industry is surely going to reap successful benefits.

Last updated on 4/14/2011

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