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Indian Economy – An Overview
 
Investment Policy
Banking and Insurance
Rationalization of tax structure – both direct and indirectProgressive reduction in peak rates of duties;Direct and indirect taxes further reduced this yearPeak Custom duty reduced to 15%Corporate Tax reduced to 30%Tariff to be aligned with ASEAN levelsValue Added Tax introduced from [url=http://www.accrh.fr]doudoune moncler pas cher[/url] 1st April 2005Rupee made fully convertible on trade account"Made in India"Third most attractive destination for manufacturingATKearney’s FDI Confidence Index 2004Indian industry equally competitive in a wide range of manufacturing skill-intensive products:Apparels, electrical and electronics components; speciality chemicals; pharmaceuticals; etc.Automotive components: Major MNC’s & their OEMs sourcing high-quality components from IndiaVolvo, GM, GE, Chrysler, Ford, Toyota, Unilever, Cliariant, Cummins, DelphiIndian companies now having manufacturing presence in multiple countriesOver 55% of approved outward investment by India companies in manufacturing activities
FDI up to 100% is allowed under the ‘Automatic Route’ in all activities except:Sectors attracting compulsory licensingTransfer of shares to non-residents under certain circumstancesInvestor having existing venture in same fieldEquity/route limit in few sectors under sectoral policiesInvestment made receive National TreatmentBilateral Investment Promotion and Protection Agreement with 57 countries including the USA.National and Most Favored Nation Treatment to investment; Investment protection features100% FDI Under ‘Automatic Route’
 
Availability of scientist and engineers      3Quality of management schools       8State of cluster development   17Quality of scientific research institutions    20Government intervention in corporate investment   34Quality of educational system  36Sophistication of financial markets   37Foreign ownership restrictions   41(Source: World Economic Forum’s ‘Global Competitiveness Report, 2003-04’)
Human Resources
From looking [url=http://www.fayatindia.com/giuseppe-zanotti.html‎]www.fayatindia.com/giuseppe-zanotti.html‎[/url] back at these predictions, literally every one of these predictions have been met or beaten by the economy even with the great recession that we are facing worldwide for the last year+. It is reasonable to expect that these is going to significant opportunities for people that are willing to look at the new world economy and leverage the change.
No prior permissionrequiredOnly information to theReserve Bank of Indiawithin 30 days of inflow/Issue of shares
India’s competitive edge - its highly-skilled manpowerOver 380 universities (11200 colleges)1500 research institutionsOver 200,000 engineering graduatesOver 300,000 post graduates from non-engineering colleges2,100,000 other graduatesAround 9,000 PhDsKnowledge [url=http://www.davidhabchy.com]barbour outlet[/url] workers [url=http://www.lotogame.fr/hollisterfrance.php]www.lotogame.fr/hollisterfrance.php[/url] in software industry increased from 56,000 in 1990-91 to [url=http://www.ttcarpets.co.uk]mulberry outlet[/url] 650,000 in 2003; This is expected to reach 2 million by 2008Due to its young demographic profile, India would continue to be surplus in working [url=http://www.nitafrymeece.com/louboutin/]louboutin chaussures soldes[/url] population for a long-time
International Trade cum Convention Centre , JaipurOffered to private sector for designing, finance, construct, operate and [url=http://www.nitafrymeece.com/louboutin/]christian louboutin pas cher[/url] maintain the facilityEstimated cost Us $ 22 millionTime frame for [url=http://www.ttcarpets.co.uk]mulberry sale[/url] implementation 18 [url=http://www.nitafrymeece.com/louboutin/]chaussures louboutin pas cher[/url] monthsDevelopment of Tijara Fort, AlwarPrivate sector would require to restore the Fort and develop interior & surroundings of the fort, would be provided for long term leaseEstimated cost Us $ 5.5 millionTime frame for implementation 18 monthsChampionship Golf Course, [url=http://www.mxitcms.com/abercrombie/]abercrombie milano[/url] Udaipur, Jodhpur or JaipurLand would be acquired and offered on long term leaseEstimated cost Us $ 5.5 million excluding land costTime frame for implementation 18 monthsInternational Convention Centre , BangaloreKarnataka Govt would acquire the land for investorsFacilities to be provided in [url=http://www.sandvikfw.net/shopuk.php]hollister outlet sale[/url] convention Centre : Exhibition space of 50000 sq Mt, food court, Conference Hall & suites, Convention Centre, shopping malls, health club, golf course, % & 7 star hotels, handicraft village, multiplexes etc.Estimated cost Us $ 111 millionUrban infrastructure
 
Infrastructure Sector
A look back at some bold predictions that were made in 2005 about India that have come true!
 
Health, education, Research & Development servicesTourism services;Consultancy servicesConstruction & design services.
Pharmaceuticals
Fiscal Reforms
Prior Government: Approval neededDecision generally: Within 4-6 weeks
Indian Pharmaceutical : A US $ 4 billion industry (retail sales)Exports: US $ 3.18 billion (2003-2004)The country ranks 4th worldwide accounting for 8% of world’s production by volume and 1.5% by value.OpportunitiesDue [url=http://www.golfwithashotgun.co.uk]barbour uk[/url] to rising costs of R&D overseas, greater tendency towards outsourcing and networking.Increasing competence in molecular biology, immunology and biotechnologyPotential for clinical research and initiating clinical trialsAn efficient and cost effective source for procuring generic drugs especially the drugs going off patent in the next few years.
Policy Initiatives
FDI up to 100% is allowed under the automatic route in townships, housing, built-up infrastructure and construction development projects including housing, commercial, premises, hotels, resorts, hospitals, educational institutions, recreational facilities etc.
Number of Scheduled Banks: 362( As on March 2003) *Indian Private Sector Banks: 30 (market share: 10%)Foreign Banks: 36 (market share: 12%)FDI PolicyFDI up to 74% from all sources under automatic route is permitted in Private Sector Banks subject to conformity of guidelines issued by RBIForeign Bank can also establish as branch or Wholly owned subsidiary
Manufacturing Activities
FDI up to 100% is allowed in [url=http://www.nitafrymeece.com/louboutin/]louboutin[/url] townships, housing, built-up infrastructure and construction development projectsOpportunities: US$ 26 billion proposed to be invested in next 5 years in urban infrastructure in 60 cities as a part of National Urban Renewal MissionThe Mission covers physical infrastructure such as water, lighting, sanitation, energy & housing.
Prior Permission (FIPB): By exception
Automatic Route: General rule
Disclaimer: This information has been collected by Vantage Agora from different public sources. Vantage Agora is not responsible any incorrect representation of data by these agencies or any risks that you might incur by making a judgment based on this information.
FDI Outlook
Services Sector

Investing in India – Entry Routes

Source:
 
 
Projects on Offer
Policy on Foreign Direct Investment (FDI)
FDI up to 100% allowed under the automatic route for development of townships, housing, built up infrastructure and construction development projectsFDI in domestic airlines increased to 49% and allowed under automatic routeFresh guidelines for investment with previous joint ventures in same field issuedTransfer of shares from residents shareholders put on automatic route
Third most attractive investment destination – AT Kearney’s FDI Confidence Index, 2004:  Second most attractive destination for manufacturing and telecommunication servicesAmong the top 3 investment ‘hot spots’ for the next 4 years:  UNCTAD & Corporate Location – April 2004Most Preferred Off shoring destination - AT Kearney’s 2004 Offshore Location Attractiveness Index
Economic GrowthSustained economic performanceAverage since 1991  6.2%2004-05   6.9%Forecast till 2050 –Goldman Sachs  5   % p.a.Services account for over [url=http://www.orlando-apts.com/cheapnfljerseys/]cheap nfl jerseys[/url] 50% of GDPManufacturing sector grew at 9% in 2004-05Exports growth 24% in 2004-05 reaching US$80 billionImports growth 35% reaching US$106 billionInvestmentForeign Investment - US$16 billion in 2003-04Mature Capital MarketsNSE third [url=http://www.mamlekabu.co.uk/mulberry/index.php]mulberry sale[/url] largest, BSE fifth largest in terms of number of tradesWell developed banking system
Electricity generation (except atomic energy)Electricity transmission & distributionMass Rapid Transport SystemRoads and HighwaysToll Roads & Vehicular bridgesPorts and HarborsHotel and tourismTownships, housing, built up infrastructure and construction development
Tourism
Rank out of 102 countries
Conclusion
Competitive Strengths
Article Tags: About India, Most Attractive, Allowed Under, Automatic Route, Townships, Housing,, Construction Development, Convention Centre, Private Sector
All manufacturing activitiesItems reserved for small-scale sector
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