India as a Favoured Investment Destination



There are many indicators why India is emerging as one of the most potential investment destinations in the world. Also, India will have a larger say in the affairs of the World Bank as it has become the seventh largest shareholder in the multilateral lender with 2.91 per cent voting rights.

From overseas investors to software giants, to telecom biggies Nokia and Samsung, to auto majors Honda and Toyota, global players are now eyeing India as the most attractive destination for doing business and are planning aggressive investment strategies to this effect. The last quarter (Jan-March 2010) alone witnessed a sudden surge in exports, forex reserves and so on.

Middle-market private equity firm Olympus Capital Holdings Asia is betting big on the clean technology space in India, a market with seemingly insatiable energy demand. Olympus has a US$-250 million regional environment fund. "About 40-50% of this fund would be invested in India," said Frederick J. Long, founding managing director of Olympus Capital. Top Japanese consultants, including Mitsubishi, Nikken Sekkei and IBM Japan, have joined hands with three state governments and the Delhi-Mumbai Industrial Corridor Development Corporation (DMIDC) to develop eco-friendly infrastructure for new cities planned in the US$ 90-billion Delhi-Mumbai Industrial Corridor (DMIC).

Several reports and surveys by various industry bodies have conveyed drastic improvements across sectors. According to the recently released data by Dow Jones Venture Source, investment in India by global venture capitalists in Indian companies more than doubled to US$ 259 million during the first quarter of 2010, with business and financial services firms accounting for a major chunk. The month of April also witnessed India Inc's merger and acquisition (MandA) deal activity picking up and touching US$ 1.74 billion totalling the MandA kitty so far this year to US$ 21 billion.

Telecom companies also are boosting their investment strategies in India. For example, forging ahead with its expansion plans in the country, Samsung India the second largest consumer durables brand, after inaugurating three new air conditioner production lines at Noida and Chennai plants, is coming up with a new plant for refrigerators by August.

The automobile sector is also slated to witness a lot of action with foreign car makers driving to India. BMW, the German luxury car major launched four new variants of the 5-Series sedan, priced between Rs 38.9 lakh and Rs 45.9 lakh. The general insurance industry too recorded 13.4 per cent growth in gross premium collected during the last financial year. The industry collected gross premium of Rs 34,627 crore in 2009-10 compared with Rs 30,528 crore in 2008-09.

Investment is pouring in into other industry sectors too as the Indian economy fundamentals remain robust and perfect for global investors to make the most of potential business investment opportunities.





About Author:
Harjeet - business in india.





All Best Articles at http://www.allbestarticles.com
You Can Link Directly to "India as a Favoured Investment Destination"
by using the url: http://www.allbestarticles.com//finance/investments/india-as-a-favoured-investment-destination.html


Add Your Picture
Add Your Picture


Article Submitted By: harjeet
This Article Has Been Read 363 Times











Publish/Share this article

Remember: The article body, title, author bio and links may not be changed or removed. By publishing this article, you agree to all the terms in our Terms of Service.
Get the HTML for reprinting the article to your site


Rating: Not yet rated




Related information on Investments

Investment Management Services

Fixed Deposits in India

Benefits of Fixed Deposits for Senior Citizens

Advantages of Portfolio Management Services over Mutual Funds

Mutual Funds or Fixed Deposits: Make the Right Choice

A Profile Of The 401K Rollover Rules

Technical Analysis Software: Spotting Potenzial Share Investments

A Brief Insight Into Stop Limit Orders

An Insight Into Investing In Private Placement

Basic Tips For Investing In Gold Coins

Tax Saving Fixed Deposit (FD) in India

Invest in Fixed Income Fund for Long Term

Some Facts Concerning Fixed Deposits

Benefits Of Getting Cash For Gold Spring

Why Buy Gold Coins Phoenix