Trade Analytics

This is the ARCHIVED section of the website. To visit the current content of the website please CLICK here

Domestic Investments

Go Back

Domestic Investments

February, 2012


The Indian economy has been catching up quite fast during the past two decades, and weathered the global recession well. A series of ambitious economic reforms intended at deregulating the Indian economy and stimulating investment has moved India firmly into the front runners of the rapidly growing Asia Pacific Region. Today India is one of the most exciting emerging markets in the world and is perceived as the second most favorable investment destination. The Indian economy has continuously recorded high growth rates and has become an attractive destination for investments, according to Ms PratibhaPatil, the Indian President. "India's growth offers many opportunities for mutually beneficial cooperation," added Ms Patil. The domestic investment in India increased from US$ 203 billion in 2004-05 to US$ 350 billion in 2009-19, according to a report by Ministry of Finance.

The Indian information technology (IT) sector continues to be one of the sunshine sectors of the Indian economy. Tamil Nadu (TN) and Chennai have become the destination of choice for IT investments, according to Ms Jayalalithaa, Chief Minister of Tamil Nadu.

According to the Global Competitiveness report 2010-11, India ranks 51 among 139 countries. India ranks higher than many countries in key parameters such as market size (4th) and innovation (39th). It also has a sound financial market (17th).

Furthermore, the total value of domestic deals in 2011 was US$ 5.04 billion (356 Deals). Private equity deal value amounted to US$ 8.75 billion (373 Deals) in 2011 as compared to US$ 6.23 billion (253 Deals) in 2010, according to the data released by Grant Thornton India,

The domestic investment announcements of India Inc registered a growth of 16 per cent during 2009 over 2008 with Gujarat, Odisha and Andhra Pradesh emerging as frontrunners, according to an analysis of a leading industrial body.

As per the assessment report for corporate investments across States and Sectors, total investment plans of India Inc increased considerably from Rs 13.8 trillion (US$ 278.58 billion) in 2008 to Rs 15.94 trillion (US$ 321. 80 billion) in 2009.

Gujarat has emerged as the most popular investment destination in India, attracting the highest number of live investment proposals worth Rs 16.28 trillion (US$ 328.62 billion) at the end of 2011, according to a leading industrial body.

The power sector has got the majority share of investments in the states of Gujarat, Odisha, Maharashtra, Andhra Pradesh and Tamil Nadu.

Investment options in India

There are various investment opportunities available in India. The different domestic investment options in India include Bank Fixed Deposits (FD), Stock Market, Mutual Funds, National Saving Certificate (NSC), Gold, Real estate, Equity etc.