India- KPMG

2007

India is breaking the shackles of policy paralysis, complex processes and procedures, which defined its business in the past few years. The new government has restored confidence among the global investors and sent the right signals to Indian industry as well. The sparkle is back. Good governance takes top gear as India prepares to occupy its position among developing countries. India recognizes manufacturing, infrastructure, defense production, information technology, education as focus areas. The Government is in a seething hurry to upscale reforms, prepare ground for inclusive growth and showcase the country as the best investment destination. It promises to replace obsolete laws, remove bottleneck and work in close competition with the developed nations. BRICS countries generate exponential growth in revenue and India finds itself in their epicenter. India assumes an enviable position due to its young population. Trained manpower, technical knowledge and the ability to work long...

2015

China and India, the two Asian giants are looked upon as being superpowers, particularly in the realm of trade. The two countries have been adopting different paths, in their gaining consideration as the two fastest growing economies in the Post Reform period. Immediately after independence India was one of the most tightly controlled economies. But with the opening of the economy in the eighties and more specifically after 1991 and the abolition of Licensing Raj and policy of intense protectionism, Indian economy has made rapid strides in certain crucial sectors. Several problems such as Poverty, Population explosion, illiteracy and absence of basic infrastructure, seem to be plaguing our economy. No doubt she has her areas of strength. But on comparison with her Chinese counterpart, there are bitter lessons that she has to learn from her neighbor. Indian economy, though at present on an economic decline, hopefully on a temporary basis, has to gear up all her reserves, if she has t...

2008

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India is one of the oldest civilizations and the second most populous country with more than 1.22 billion people. A country with a high percentage of young population – 47% of the population is less than 25 years of age. The country has been posting a positive GDP number successively as compared to most of the developed economies who continue to suffer from the recessionary trends since 2008. The country offers many opportunities for investment and growth. The sheer size of the market is mouth watering for the Multi-national companies (MNC). With the economic development, the income levels of people are increasing and the number of middle class families is on the rise offering a very lucrative market for vendors. There is an ever increasing pressure on the government to open up many sectors for FDI like the multi-brand retailing and create a friendly environment for increasing investment in sectors like infrastructure. Though the government is facing many pressure groups within and outside the parliament against the policy initiatives, the hold-up can not continue for too long. The government will have to bite the bullet and face the consequences. This article highlights some of the opportunities available for investment to be exploited by local business entities or by the MNCs.

1996

Abstract: India still is not attracting attention from foreign investors commensurate with its size and economic potential, nor is its engagement in world trade keeping pace with that of the more dynamic developing countries-especially comparable countries in East Asia. Despite considerable improvement in policies and performance in recent years, India's progress toward integration in the global economy has been modest. The four chief areas of weakness seem to be:

This paper provides an update on the historical and recent performance of the Indian economy. It reviews India’s growth performance, and the supporting performance of savings and investment, productivity and international trade. It highlights the performance of a dynamic sector (automobiles) and a laggard sector (agriculture) and comments on the structure of income growth in recent times. It also points out emerging constraints on rapid economic growth, e.g., increasing regional and personal inequality, rising unemployment, infrastructural constraints and the fiscal deficit. It assesses the prospects for economic growth in the near term.

Stimulating growth: Public Investments vs Foreign Direct Investments

The central concern of the paper is with the challenges confronting India's growth trajectory in the context of globalization. After a long stretch of remarkable growth, starting in the early 1990s, the Indian economy ran into choppy waters since the start of the recent global financial crisis. It is possible for the nation to navigate through this and return to rapid, inclusive growth. The paper outlines a series of policy measures that India ought to undertake, ranging from reforming the food distribution system, through more pro-active foreign policy and active engagement with the global economy, to reforms of political institutions to create a more stable governance system.

ISAS Insights, 2020

As a possible fall out of the COVID-19 pandemic crisis, India has the opportunity to attract foreign direct investment inflows from large companies seeking to diversify their investment to mitigate risks. It has set up an empowered group of secretaries to engage in conversation with these companies and provide all possible facilities to them to ensure ease of setting up business. In addition, some incentive schemes have been announced in sectors where the government feels India has an advantage such as mobiles, electronics and medical equipment. However, mere incentives may not be sufficient to attract these investors. It will require a whole ecosystem which is facilitative and not overbearing. China had, over the years, become the most preferred destination for international companies to set up shop and supply their products to global markets. The excellent infrastructure, abundance of cheap and professional labour, ease of doing business facilities, a strong business ecosystem, low taxes, not-so-strict regulatory compliances and competitive currency practices are the main reasons for the attraction towards China. As a consequence, China became the largest recipient of foreign direct investment (FDI) in Asia. 1