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India : The Growing Investment Capital of the World
Thursday, October 26, 2006
Non Resident Indians News & Top Stories

India is the next destination for global investors in the recent times. With economic boom and the liberalization of government policies, there has been a major inflow of investments into the country. And mainly with relaxation of FDI in the real estate sector, there has been seen an inflow of investments from foreign as well as NRI investors. On one hand where FDI in construction in real estate has opened up the door for developers from around the globe to invest in real estate development in India, it has also brought about a competitive environment in the Indian real estate market, procuring the investors with quality constructions.

India as the best bet for investment has been confirmed by the reports on the recent trends in investment inflow during the last few months. Inflows of foreign direct investment (FDI) into India during the first four months of the current financial year 2006-07 (April-July) is estimated to be USD 2.9 billion, which is up by a record increase of nearly 92% over the same period last year.

While FDI has increased from USD 324 million in July 2005 to USD 1163 million in July 2006 which is a record surge by a 259%, FDI inflows into the manufacturing sector and sectors impacting the manufacturing sector continue to show a record growth. Also, FDI in retail has provided new business opportunities in India for global brands to acquire a market share of their products. Rationalization and liberalization measures in the FDI policy has resulted in a surge in the inflows into such sectors creating opportunities for foreign investors and NRIs to invest in India.

The rise in FDI in India real estate has also set up the backdrop for better quality developments in construction and realty structures. With more and more foreign players in the sector and joint ventures being the new brand Game, there has been a setting influence even among the local developers to provide good quality construction and modern amenities to keep up to the pace of the competition in the thriving realty market. This has for the most being a blessing in disguise for the NRI investors who seek modern international standard living spaces at par with their changing lifestyle.