India is the most attractive investment destination in the world, according to a survey by global consultancy firm Ernst & Young (EY). The Indian economy is expected to grow at 3.4 per cent in the current fiscal, a slight increase from 3.3 per cent in FY 2012–13, as per projections from the Organisation for Economic Co-operation and Development (OECD). The growth is estimated to be even greater in FY 2014–15 (5.1 per cent) and FY 2015–16 (5.7 per cent).
India’s exports have also been doing well, touching US$ 303 billion in FY 2012–13, almost double of what it managed (US$ 167 billion) four years ago. Experts express confidence that the figure will scale US$ 325 billion by the end of the current fiscal. The US$ 1.2 trillion investment planned in the infrastructure sector will go a long way in boosting export performance of Indian companies and the Indian growth story, according to Mr Anand Sharma, Union Minister for Commerce and Industry, Government of India.
The HSBC Trade Confidence Index, the largest trade confidence survey in the world, has positioned India at the top with 142 points. The increasing demand due to its population makes the country a good market for consumption goods, according to the report.
The Economic Scenario
India's industrial economy is gathering momentum on the back of improved output of eight core sector industries – coal, crude oil, refining, steel, cement, natural gas, fertilisers and electricity – which, at 8 per cent in September 2013, rose at its fastest pace in a year.
The Cabinet Committee on Investments (CCI) has approved the speedy execution of 36 infrastructure projects entailing investments of Rs 1,830 billion (US$ 29.28 billion) to boost investor confidence, according to Mr P Chidambaram, Union Minister for Finance, Government of India.
Some of the other important economic developments in the country are as follows:
- Indian companies signed as many as 360 private equity (PE) deals totalling US$ 8.9 billion during the January–October 2013 period, registering an increase of 33 per cent over the corresponding period a year ago. In the first 10 months of 2012, India Inc had announced 345 transactions worth US$ 6.7 billion, according to a report by global assurance, tax and advisory firm Grant Thornton.
- Indian corporates raised Rs 1,700 billion (US$ 27.20 billion) through commercial papers (CPs) during the first half of FY 2013–14. A total of 169 issuers raised this amount, according to a report by Prime Database.
- Exports from India during August 2013 were valued at Rs 1,652.02 billion (US$ 26.42 billion), registering a growth of 28.53 per cent as compared to Rs 1,285.35 billion (US$ 20.56 billion) during August 2012.
- The cumulative amount of FDI equity inflows into India were worth US$ 303.06 billion in the April 2000–August 2013 period, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).
- Foreign exchange (Forex) reserves of India rose in the week ending October 11, 2013 by US$ 1.5 billion to US$ 279.24 billion, according to data released by the Reserve Bank of India (RBI).