India leads regional inflow of Foreign Direct Investment (FDI) in South Asia accounting for US$34 billion investment in 2014. The upward trend has been continuing since then with the investment rising to US$62 billion in 2017. It is approaching towards US$100 billion FDI inflows by 2022.
As stated by International Monetary Fund (IMF), India is expected to grow at an annual rate of 7.4 per cent in 2018 and 7.8 per cent in 2019. India’s projected growth rates are well above China’s 6.6 per cent in 2018 and 6.4 per cent in 2019.
Latest reports show that things are getting even worse for Chinese economic growth over the long term period due to continuous rise of the country’s non-financial debt thanks to high consumer debt and household debt. FDI inflows to South Asia has been increasing primarily owing to good performance by India.
The Make in India has been instrumental for FDI reforms in the country. The government has liberalised FDI norms. Inspite of global economic downturns, this has resulted in increased foreign funds inflow in the sectors such as defense, medical devices, infrastructure, retail and aviation. Major investing countries are US, Mauritius, Singapore, Japan, Netherlands, Germany, France and UAE. Due to our efforts there has been considerable investment interest from Scandinavian countries.
In an endorsement of India’s fundamentals, almost one-third of the respondents in a survey by Ernst & Young ranked the country as the most attractive market. 60% placed it among the top three investment destinations. China was considered India’s main competitor. The survey was based on the responses of 505 global decision maker. Business leaders said they found India’s macroeconomic and political stability, FDI policy and ease of doing business quite attractive.
The IMF calls India “the bright spot in the global landscape.” The country will have the largest and youngest workforce in the world within the next decade. It is the fastest growing economy and all set to become the third biggest economy by 2030 climbing past Brazil, UK, France, Germany and Japan.
The Feelberry Consulting team helps Scandinavian and Asian companies to collaborate and invest in synergy partners. For decades, we have been helping companies to expand to European and Asian markets. Our latest endeavour is to mentor and incubate startup companies helping them to access Venture Funding and Crowd Funding sources and to establish a sustainable business.