Indian markets, across all industries, are considered as viable long-term investment options as the country stands strong amid global financial turmoil. India is considered to be the third most favoured destination for investment after China and the US for major global companies, according to UNCTAD's World Investment Report 2012. The report anticipates that foreign investments in India could increase by over 20 per cent in 2012-13.
International majors, dealing in diverse businesses, are keen to partner with Indian conglomerates in a bid to tap fresh markets and increase their global market share. Various deals and developments pertaining to foreign direct investment (FDI) in India are discussed hereafter.
- India received FDI worth US$ 1.47 billion in July 2012 while cumulative inflows for April-July 2012-13 stood at US$ 5.9 billion, according to latest data released by the Department of Industrial Policy and Promotion (DIPP)
The sectors which attracted huge FDI inflows during the April-July 2012-13 are: services (US$ 1.65 billion), pharmaceuticals (US$ 478 million), construction (US$ 421 million), metallurgical industries (US$ 334 million), power (US$ 237 million) and automobile (US$ 234 million)
Mauritius infused highest inflows worth US$ 1.97 billion, followed by Singapore (US$ 886 million), Netherlands (US$ 616 million), the UK (US$ 421 million), Japan (US$ 417 million) and Germany (US$ 276 million)
- Private Equity (PE) companies have invested about US$ 2.5 billion through 97 deals during the July-September 2012 quarter, according to a report by research firm Venture Intelligence. The investment saw a quantum jump from the previous year's quarter (when US$ 2, 415 million were invested through 120 transactions) as well as from the immediate previous quarter (when US$ 1, 909 million were invested across 105 deals)
- Similarly, the country's mergers and acquisitions (M&As) activities intensified in July-September 2012 quarter wherein deals worth US$ 9 billion were recorded; marking a stupendous growth of 310 per cent over April-June 2012. This took the total M&A deal value to US$ 28 billion in 2012
- Foreign exchange reserves stood at US$ 294.81 billion for the week ended September 28, 2012 wherein the value of gold reserves was recorded at US$ 28.133 billion and that of foreign currency assets (FCAs) was at US$ 259.96 billion, according to the Reserve Bank of India (RBI)'s weekly statistical supplement. The value of special drawing rights (SDRs) was US$ 4.45 billion and the country's reserve position with the IMF was at US$ 2.27 billion