India : The Growing Investment Capital of the World

India : The Growing Investment Capital of the World
Thursday, October 26, 2006

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.

Photo: Mumbai skyline, Coastal road, Carter Road by Wander-earth, licensed under CC BY-SA 4.0, via Wikimedia Commons.