India as an Investment Hub- a Global Perspective

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India as an Investment Hub

A Global Perspective

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Arun Kumar Singaraj Amit Kumar Singh

arun_singaraj@iitb.ac.in amitkrsingh@iitb.ac.in

9076454964 9920247110

SJMSOM, IIT Bombay

India as an Investment Hub: A Global Perspective

Since the early 90s India has taken very important steps towards gradual process of liberalization and openness of its economy. Stability has been a constant factor in recent years for the Indian economic environment which is guaranteed by a democratic system which has provided the opening process of credibility and security; this is reinforced by tradition and credibility of our judicial system.

Abundant and low wage labors, widespread usage of English in Government and Commercial Level, high level of technical training of high percentage of the workforce gives Indian workforce an edge over the next few years among Asian countries and hence one of the world's most attractive destinations for investment. It’s evident the India is the place where the world can generate a lot of great business opportunities in the long run and will be one of the great economic powers of the future. A survey of business confidence by AT Kearney, India is the third favorite destination for foreign direct investment worldwide.

India’s Gross Domestic Product (GDP) has amplified 7.90% in the last 4 quarters. We share 1.96% of the world economy which stands at 1217 billion dollars. Indian service industry has been the major driving force in economic growth; it contributes more than 50% of India’s output. India is the second fastest growing country in the world and has shown sustainability in the times of financial crisis thus enhancing the confidence, attractiveness and trust among the foreign investors for India.

Some factors responsible for favorable foreign investments are-

Political- At present, the Congress is in its second term of governance. In 2009 Indian...