India
Last update: April 2008
Competitive Advantages
Business Environment
Stable democratic environment in over 50 years of independence.
Large market size with a middle class population of 250-350 million with increasing purchasing power reflected by remarkable increase in purchase of consumer durables in recent years.
Access to regional international markets through membership of regional integration frameworks such as SAARC. Proximity to affluent West Asian and ASEAN markets.
Conducive foreign investment environment that provides rapid approvals, freedom of entry, investment, location, choice of technology, import and export. Current account convertibility of the Rupee, and capital account convertibility for foreign investors.
Large and diversified infrastructure spread across the country. Large resources of untapped natural wealth.
Thrust on technology, innovation and knowledge base. Home to premier world-renowned educational, technical and management institutions. Developing as one of the largest cost - competitive technical workforce nations.
Well-developed banking system, with a commercial banking network of over 63,000 branches, supported by a number of national and State level financial institutions.
Acceleration of the privatisation process, restructuring of public enterprises, and reform of the tax structure.
Established, independent judiciary with a hierarchy of courts.
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Economic Outlook
The overall growth of GDP during 2006-07 (as per the Quick Estimates of CSO) has been placed 9.6 per cent. Growth during the 2007-08 (as per Advance Estimate of CSO) has
been estimated at 8.7 percent
Overall industrial growth was 8.7 per cent during April-January, 2007-08 as compared with 11.2 per cent in April- January 2006-07.
Large manufacturing capability, spanning almost all area of manufacturing activities Well developed R&D infrastructure and technical and marketing services.
Core infrastructure sectors achieved an average growth rate of 5.7 per cent during April- December 2007-08 as compared with 8.9 per cent in April-December, 2006-07.
Exports grew by 21.6 per cent in dollar terms during April- January 2007-08. Imports increased by 29.6 per cent in April- January 2007-08.
Forex reserves (excluding Gold and SDRs) stood at $283.59 billion at the end of January 2008.
Rupee appreciated against US dollar and, Pound Sterling and depreciated against Japanese Yen and Euro in January 2008.
The annual inflation rate in terms of WPI (Base 1993-94=100) was 5.11 per cent for the week ended March 1, 2008 as compared to 6.51 per cent a year ago.
Tax revenue (net to Centre) during April-January 2007-08 was higher by 26.4 per cent compared with corresponding period 2006-07.
In terms of value, Fiscal deficit during April- January, 2007-08 decreased by 13.7 per cent over corresponding period last year.
In terms of value, Revenue deficit during April- January 2007-08 was lower by 31.5 per cent over corresponding period last year.
Vibrant capital market comprising 23 stock exchanges with over 9,000 listed companies.
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Investment policies, laws and regulations
Foreign investment welcome in almost all sectors barring some of strategic concern like atomic energy. Even defence production is now open to the private sector and foreign investors.
Special investment and tax incentives given for exports and certain sectors such as power, electronics, telecom, software, oil & gas, and research and development activities.
Uniform VAT from 1 April 2003.
Legal protection for Intellectual Property Rights.
Import regime in conformity with WTO commitments - removal of remaining quantitative restrictions on imports of goods into India barring certain items on grounds of national security, defence and health.
Source: High Commission of India in London & Indian Ministry of Finance
Last update: April 2008
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