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Domestic Investments

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Domestic Investments

May, 2012

Introduction

The Indian economy has continuously recorded high growth rates and become an attractive destination for investments, according to Ms Pratibha Patil, the Indian President. "Today India is among the most attractive destinations globally, for investments and business and FDI had increased over the last few years," said Ms Patil.

The wealth of high net worth individuals (HNIs) in India, is set to grow by a compounded annual growth rate (CAGR) of 23 per cent over the next four years and will touch a whopping figure of Rs 249 trillion (US$ 4.43 trillion), highlighted a report by Karvy Private Wealth, the wealth management arm of the financial services firm Karvy Group.

Moreover, India continued its ascent as a top destination for private clean energy investment, according to a research report released by The Pew Charitable Trusts. "Clean energy investment, excluding research and development, has grown by 600 per cent since 2004," according to Phyllis Cuttino, Director, Pew's Clean Energy Program. India's 'National Solar Mission,' with a goal to have 20 gigawatt (GW) of solar power installed by 2020, helped drive the seven-fold jump in solar energy investments to US$ 4.2 billion, the report said. India now has 22.4 GW of installed clean energy generating capacity.

In addition, a study has pegged Indian potential for wind energy at 3,000 GW. It claims that the potential for wind energy utilisation with the prevalent technologies is far in excess of earlier estimates by Center for Wind Energy Technology (CWET). The Centre estimated Indian wind energy potential at 49,000 MW and increased to 100 GW subsequently.

Investment options in India

With a goal to connect entrepreneurs with investors, a group of angel investors, including Rajan Anandan, Managing Director, Google India, has come together to launch an online platform, VentureFund.com, with an initial corpus of US$ 100 million. The platform aims to connect entrepreneurs of early stage companies with qualified investors from around the world. Though the platform would be free for investors, entrepreneurs would have to pay a one-time fee of around US$ 100 after being contacted by a prospective investor. "With over 100 million start-ups coming up every year worldwide, this market is very fragmented. But, most of these start-ups look for mentoring and funding. We wanted to create a platform for both entrepreneurs and investors," said Ashok Kurien, Director in the boards of Zee TV, Sun TV and Playwin.

  • The Confederation of Indian Industry (CII) has launched a cluster development programme for Godrej Interio and its six vendors in the industrial town of Bhagwanpur, Uttarakhand. So far, 208 clusters of SMEs have been formed by CII all over India, according to Harinder Jeet Singh, Principal Counsellor at the CII-Avantha Centre for Competitiveness
  • The Bengaluru-based Narayana Hrudayalaya Hospitals plans to invest Rs 5,000 crore (US$ 889.67 million) on setting up a chain of 100 low-cost specialty hospitals and at least three more health cities in the country. The low-cost hospitals will add about 30,000 beds in five years. The company will invest Rs 25-30 crore (US$ 4.45-US$ 5.54 million) on each of these hospitals using pre-fabricated construction materials. Nine such projects will be operational in the next 18 months
  • VA Tech Wabag has set up the largest desalination plant worth Rs 1,000 crore (US$ 177.93 million) for the Chennai Metropolitan Water Supply and Sewerage Board. The public sector water utility achieved an important milestone, when a pipeline was launched into the sea to take in over 300 million litres of sea water a day. This is the second desalination plant to supply water to the city with the first in operation at Minjur to the North of Chennai as a private sector project
  • Mahindra Group is to foray into affordable housing this year to tap demand for such homes. Each project will have 1,000 to 2,000 units spread over 10 acres. A home is to be priced between Rs 700,000 (US$ 12,455.52) and Rs 1500,000 (US$ 26,690.39). Currently, Mahindra Lifespaces is in process of finalising land parcels in Maharashtra and Tamil Nadu (TN)
  • Public sector banks (PSBs) plan to install 60,000 more Automated Teller Machines (ATMs) across the country over the next two years. The number of ATMs in the country had reached 98,025 by the end of April 2012, according to data from National Payments Corporation of India
  • Spice Board of India plans to promote exports of spices by establishing 25-30 spice parks in different parts of the country. This will help in achieving export of spices worth Rs 30,000 crore (US$ 5.38 billion) by 2020, as per Dr G K Vidyashankar, Deputy Director (Marketing), Spices Board. These parks would give a common platform for farmers, traders and exporters