Along with China, India is one of the fastest growing economy in the world. The Indian economy has emerged with remarkable rapidity from the slowdown caused by the global economic crisis and emerged stronger in 2011. The Indian economy posted a robust growth of 8.6 per cent in GDP during 2010-11 has been due to the robust growth rates of over 8 per cent in the sectors of manufacturing, construction, trade, hotels, transport and communication, financing, insurance, and, real estate and business services. Foreign direct investment (FDI) into the country more than doubled in May (2011) from year ago (2010), touching $4.66 billion against $2.21 billion in May last year.

It is a perfect time to invest in India because those who get in at the start are the ones who are going to win in the long term. With the economy continuing to boom you are in the ideal position to quickly become well established before everyone else wakes up to the possibilities that are available. Some of the few reasons why you should invest in India, can be summarized in following points:

Fastest growing economies in the world

Besides China, India is the fastest developing country with a robust growth of 8.6 per cent in GDP during 2010-11. According to the International Monetary Fund, India’s nominal GDP for 2010 was US$1.538 trillion and its estimated GDP for 2011 is US$1.7 trillion, making it the tenth-largest economy in the world. In terms of purchasing power parity (PPP), India’s economy is the fourth largest in the world at US$4.06 trillion. India’s per capita income, often used to measure a country’s standard of living, increased by 17.9 per cent during 2010-11 to US$ 1226.4 as compared to US$ 1040.2 in 2009-10. India’s economic model is now being described overall as capitalist.

Large Population with Growing Income

India has the fastest-growing population in the world, expanding at the rate of some 16 million per year. Half of the country’s population is younger than twenty-six. It is reported that there has been an increase in the number of people who eat out, use credit cards, shop in big departments stores and use mobile phones. Demographics have changed rather dramatically in that much of the wealth is now filtering to rural areas. These areas are considered to be traditionally lower income areas.

It has been reported that some two hundred million people in the country are now deemed to be middle class. In the next eight years this is expected to grow to as much as five hundred million people. It is expected that some seventy one million people will be working in the country. Some studies suggest that India’s per-capita income can eventually reach six times that of China. Imagine 1.4 billion people in India who on average earn six times more than their industrious neighbors in China! Symptoms are very much visible. Indian demand for telecommunications, autos, housing, financial services, jewelry — you name it, is exploding.

Stable Political Environment

Quite often, the Indian economy is compared with China. But while doing so, we should never forget that unlike China, India is democratic country. When the newly liberated countries of Asia were drowning in the pool of military dictatorship or communism, India stood apart. In the past 60 years, India strengthened its democratic traditions. Some of the political problems, which we see on the surface of this country, are infact sign of its good health. It is very unlikely that India will go the way, Egypt, Tunisia or Pakistan has gone.

Indian Government works on the theory of checks and balances. Here the sovereign power is shared by Legislature, Executive and Judiciary. Thus, chance of autocratic regime is not existent. In the past, some attempts to establish autocratic rule failed. One more advantage with India is that its bureaucracy is very well structured and responsive. Last but not the least, India is governed by the Rule of Law. This makes the country safe for foreign investors.

Liberal Economic Policies

The government of P. V. Narasimha Rao and his finance minister Manmohan Singh started economic liberalisation in India. The new policies included opening for international trade and investment, deregulation, initiation of privatization, tax reforms, and inflation-controlling measures. The overall direction of liberalisation has since remained the same, irrespective of the ruling party. The main objective of the government was to achieve high economic growth and industrialize the nation for the well-being of Indian citizens. Today India is mainly characterized as a market economy. The fruits of liberalisation reached their peak in 2007, when India recorded its highest GDP growth rate of 9%. An Organisation for Economic Co-operation and Development (OECD) report states that the average growth rate @ 7.5% will double the average income in a decade, and more reforms would speed up the pace.

Government has made life easier for investors by reducing paperwork and becoming investor friendly. Huge inflow of funds has come into the capital markets as well. Many foreign investors are seeing the country as an ideal area for return on investment. The government has introduced policies of reform so that economic growth can be accelerated. Industrial license are also not needed as much as before for people who wish to invest in India. All of this has made India a haven for would be investors.

Valuable Human Resource:

The Indian economy has turned its biggest problem ‘population’ into its biggest strength ‘The Large Human Resource.’ One of the earliest acts of the newly independent India was to create the foundation for scientific and engineering education. Over the last sixty years, India has built a strong and a robust educational system – which now graduates millions of students every year. Strong knowledge base with significant English speaking population, makes India very favourable amongst the Investors.

When we compare the cost of Human resource, the advantage of India becomes apparent. It is not only the unskilled labour, but also the skilled workforce is available at very competitive price. Cost of advertising and marketing in the country is a fraction of what you would pay in the western world. Consequently, the cost of production is most economical in the country. Some of the biggest brands in the world – like Coca-Cola – are now turning to Indian creative types to manage their online advertising campaigns.

Global business giants have realized the innovation potential in India and have started investing in India. IBM, GE, Microsoft, Cisco, Intel and sixty other top innovating companies have already setup their R&D centers in India. These investment will further create an experienced talent pool which will inturn attract the best talent from other parts of the world as well. Companies investing in India for establishing their R&D centers will reap rich rewards through creating of innovative products and solutions.

Vast Natural Resources

India’s most important natural resources are land and water. The favourable climatic condition further augments the availability of fertile land for cultivation. About 54.4 percent of the land area is cultivable, and groundwater resources are considerable. The Gangetic Plain is one of India’s most fertile regions. These regions may produce two or three harvests a year. Most of India’s wheat and rice are grown here. The black and red soils of the Deccan Plateau, although not as thick as the Gangetic Plain alluvium, are also fertile.

Forests constitute another natural resource for India, with woodlands covering 21.6 percent of its land area. India’s highly varied climate and land produce diverse forests. Major commercial tree species include teak, rosewood, and sal. Bamboo is a widely used construction material.

The mineral resources of India include a vast belt of coal reserves stretching from the eastern part of Maharashtra state through Chhattisgarh and Jharkhand to West Bengal state. The same geographical area, with the addition of Orissa state, contains major deposits of bauxite. Iron ore is also found here, as well as in the Western Ghats in and around Goa. Other mineral deposits include manganese (found mainly in central India), copper, and chromite. There are significant oil and natural gas reserves in Assam and Gujarat states, and on the continental shelf off Maharashtra and Gujarat. India also has ample reserves of phosphate rock apatite, gypsum, limestone, and mica. All these resources, put together, promise a significant future potential for the Indian economy.

Positive indication from all direction

Along with strong and everlasting fundamentals, recently India has witnessed a series of positive indications. Let us list some of them :

Soaring Government investment in the country’s infrastructure —

Indian government is planning to spending billions of dollar on industrial-related projects over the next three years on High-speed rail freight lines, power plants to supply an additional 4,000 megawatts, sea ports, new airports, new industrial clusters, and more. By 2012, the government plans on spending a total of $500 billion to build out and improve India’s infrastructure.

Corporate earnings in India are growing at an astounding 25% annual rate.

Aggregate net profit of 450 companies that have declared results till date for the third quarter grew 25% over the year-ago period, an Economic Times study shows. The benchmark stock indices that had bottomed out in March 2009, went on to more than double over the past two years only to correct by 10% over the past few weeks.

Private equity investors are now putting more money in India than in China.

Investors are preferring India rather than China. This is mainly due to, unlike China, India has vast natural resources, political stability, huge availability of land for setting up of manufacturing industries besides being the largest democracy in the world and an English speaking country. Infrastructure investments account for the lion’s shares of the private equity flows into India, followed by the real estate, banking and financial services, and telecom sector. Further, India’s culture and tradition is known all over the world for atithi devo bhavah, welcoming of guests like god.

Relations with Other Countries

India has formal diplomatic relations with most nations. As a second most populous country and the world’s most-populous democracy and recently has one of the fastest economic growth rates in the world. With the world’s tenth largest military expenditures, and eleventh largest economy by nominal rates or fourth largest by purchasing power parity, India is a regional power, and a potential global power. It is India’s growing international influence that increasingly gives it a more prominent voice in global affairs.

India – United Kingdom relations since 1947 have been most friendly with cultural and economic bondage and there are many areas in which both India and the UK seek stronger ties for mutual benefit. Both countries are full members of the Commonwealth of Nations. In India, English is one of the official languages. Prime Minister David Cameron described Indian – British relations as the “New Special Relationship” in 2010.

Investing in India with ASC Investment Private Limited

Today, India is one of the most preferred investment destinations in the world. It is mainly because of the points as outlined above. Being self-reliant in every aspect and having a stable environment, India is attracting foreign direct investment like never before.

There are different ways of investing in India, one of them being ASC Investments Private Ltd. We provide a gateway to investors outside India for investing in India and achieve highest returns. Under the guidance of Mr. Alok Sinha, the ventures/projects undertaken assure highest returns as his expertise and knowledge in the field of investment has been appreciated globally.

World renowned Name in Investment Solicitation :

Mr. Sinha is extensively involved in foreign and domestic investments solicitation across the globe. He has been involved in a advisory capacity to various government initiatives.

ICEX (Spanish Institute of Commercio Exterior) is a commercial administrative wing in Spain which helps in internationalization of Spanish companies by promoting commercial activities and supporting investors from their country technically and financially by giving them opportunities to venture into developing world markets and centers of business. The representatives of ICEX personally invited Mr. Alok Sinha to support and provide help to promote bilateral investments between Spain and India.

The Malta Enterprise asked Mr. Alok Sinha to extend his help to promote the process of investments in their country. Due to the efforts of Mr. Sinha, the advantages of Double Taxation Avoidance Treaty between the two countries could be availed by investors.

Similar advantages of Double Taxation Avoidance Treaty are shared by the governments of Mauritius and India. The investment Commissioner of Mauritius attended a conference of Bhartiya Society and was impressed by Mr. Alok Sinha, so asked him for support regarding investments in his country.

Recently Mexican Embassy approached Mr. Alok Sinha and sought help from ASC, Solicitors & Advocates to provide necessary support to a chain of investors from Mexico, particularly in Restraunt business, to find suitable partners for joint ventures and for making investments in India. They wanted to utilize vast knowledge and contracts of Mr. Sinha who as a president of Bhartiya society and ASC solicitors & Advocates, command great respect in India.

 

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