My first article ....

I have sent this article to a competition ... I don't know if it will win or not but I have put some effort in it ... (I think Its kind of informative) ... So MY FIRST ARTICLE goes like this .......

India as an investment Hub: A global perspective

“Go India” is the new mantra that foreign companies are looking forward to these days. There are four core reasons for India being considered an investment hub.

India is the second most populated country in the world and it has varied culture and heritage. Most of the markets of the developed world are now saturated now. As a result now companies are searching for new untapped market. India has a large untapped market and hence companies are looking forward to invest in India.

Second reason for foreign companies being so interested in Indian market is its considerably high growth rate which stood at 7.4% in the year 2009. India is considered as one of the fastest growing economies of the world. India’s steady economic growth even during then time of global crisis and big untapped business potential available in country have been key factors to ensure continued FDI.

Third reason is easy availability of cheap resources such as raw materials for different industries. Since most of the resources here in India are naturally abundant foreign see a lot of potential. Another core reason for India being looked up as a hub for investment is the cheap availability of skilled and unskilled labour. Most of the other foreign nations suffer from lack of availability of labour.

Fourth and the most important reason for India being looked up as an investment hub is its liberal trade policy with most of the nations in world. India’s foreign trade policy puts fewer barriers for most foreign companies and hence encourages them to invest in India. India provides an investor friendly environment since there is very less restriction on entry and exit barriers

European Union and India

“We want you to reduce barriers to foreign investment in Banking, insurance and legal services, so that we can both reap the benefits” these are the words of David Cameron, the President of Britain when he visited India in August, 2010.

European Union member countries are looking forward to invest India. For example Britain is focussing on civil nuclear sector and London is keen to starting giving licences to its civil nuclear firms to export to India and opening up business prospects potentially worth billions of pounds.

USA and India

Both India and USA have agreed upon a “Indo-US policy forum framework on Trade and investment” and according to it both the countries will be looking forward for foreign investment.

Indo-US nuclear deal has given hope to India to increase capacity of its plant from current 4500 MW to 50000 MW by 2030 but to that it needs a lot of investment. India is thus now has opened up its market for international private vendors ranging from equipment to fuel suppliers to construction companies.

ASEAN and India

India has undergone in an agreement with ASEAN countries which has resulted in Increased investment by these countries. The cumulative FDI inflows from Singapore during April 2000 and March 2010 were US$ 10.2 billion, according to data released by the Department of Industrial Policy and Promotion (DIPP). Malaysia is the 25th largest overall investor and third largest investor among ASEAN countries with a total inflow of US$ 252.97 million during the April 2000-March 2010 period, according to data released by the Department of Industrial Policy and Promotion.

Asia pacific and India

India has undergone Asia pacific trade agreement with Bangladesh, China, India, Republic of Korea and Sri Lanka. This trade agreement has opened the gates for investment from these countries in sectors like Telecommunication, construction and highway, power, automobile etc.

Japan and India

Japan has completely tapped the domestic market of its own country and is thus looking forward to invest in other countries. It aims at getting 40% of its income from overseas market and since India has loosened its trade barriers it is now looking forward to invest in India.

MERCOSUR and India

India has entered into a Regional trade agreement with Argentina, Paraguay, Uruguay and Brazil which has opened up new opportunities for both India and members of MERCOSUR of investment.