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India is in the middle of fast economic and social conversion and it provides a constant, flourishing platform for businesses to grow. It also provides rich investment opportunities to non-resident Indians (NRIs). It is one of the quickest, easiest and successful cost-effective commitment locations to set up a company. In fact, India is the second-most successful location, according to UNCTAD's World Investment Leads Study 2010-2012. Foreign Investments in India Indian equities have attracted maximum investments by Foreign Institutional Investors (FIIs) as compared to any other Asian market on the back of policy reforms undertaken by the Government of India to promote economic growth. Foreign investors in India remain substantially strong and have invested over US$ 13 billion into Indian stocks till September 2012. Some of the key investments and developments are: - Overseas investors infused about US$ 645 million from October 1, 2012 to October 5, 2012 itself, while they invested more than US$ 3.5 billion in the month of September 2012, according to data released by capital market regulator, the Securities and Exchange Board of India (SEBI)
- FIIs also infused Rs 1,382 crore (US$ 260.47 million) in the debt market in the first week of October 2012
- As on October 5, 2012, the number of registered FIIs in the country stood at 1,753 while, the total number of sub-accounts were 6,329
- Another statement issued by the Reserve Bank of India (RBI) revealed that foreign exchange reserves stood at US$ 294.81 billion for the week ended September 28, 2012 wherein the value of gold reserves was recorded at US$ 28.133 billion and that of foreign currency assets (FCAs) was at US$ 259.96 billion
The Center for Monitoring Indian Economy (CMIE) projects that FII inflows would strengthen in the second half of FY13 at US$ 11.2 billion as India is looked upon as a viable long-term investment destination on the global canvas. Major FIIs like JP Morgan, Morgan Stanley and Deutsche Bank are believed to drive the positive wave of foreign investments.Government Initiatives The Government of India is playing a vital role in attracting and providing an investment friendly climate to foreign investors in India. The policies have been liberalised to entice more and more cost-effective commitment methods. Some of them are as follows: - The Government has created many policies and schemes to maximize investment opportunities for NRIs in the real estate sector of India
- RBI has allowed, both people residing outside India holding Indian passports and also person of Indian origin (PIO) to invest in residential as well as commercial properties in India
- RBI has granted general permission to NRIs/PIOs, for undertaking direct investments in Indian companies, under the automatic route purchase of shares
- NRIs/PIOs are permitted to invest in the foreign direct investment (FDI) scheme on a repatriation basis in equity shares/ Compulsorily Convertible Preference Shares (CCPS)/ Compulsorily Convertible Debentures (CCDs) of an Indian company
Government’s involvement on policies, especially, tax rules and foreign direct investment (FDI) in areas like retail, aviation etc. will play an important part in driving large deals. India’s development tale continues to be unchanged and NRIs/PIOs can look ahead to see better financial commitment options in second half of 2012.About the Author: Harjeet is an Indian - born mass-market novelist, who covers the world internet related topics . He writes columns and articles for various websites and internet journals in the domain of Investments.
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Investment Opportunities, Foreign investors in India, Foreign Institutional Investors, Overseas investors, FIIs, FII inflows, investment climate,
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