The domestic investment market in India is in good health. The total value of domestic deals in India during the third quarter of 2013 was US$ 1.31 billion, up from US$ 1.29 billion during the corresponding period of 2012. The country’s industrial economy is gathering momentum on the back of the improved output of eight core sector industries – coal, crude oil, refining, steel, cement, natural gas, fertilisers, and electricity – which rose at its fastest pace in a year at 8 per cent in September 2013.
Also, 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.
In spite of the country’s improvement in domestic investment over the years, a lot can still be achieved. A developing country like India should focus more on domestic investments than foreign direct investment (FDI), according to Mr Onno Ruhl, Country Director for India, World Bank. The good news is that there is wide scope for domestic investments in the country.
Investment options in India
- Indian companies signed as many as 360 private equity (PE) deals totalling US$ 8.9 billion during January–October 2013 period, registering an increase of 33 per cent on the deals of the corresponding period in 2012. The total value of PE deals in the first 10 months of 2012 was worth US$ 6.7 billion, according to a report by global assurance, tax and advisory firm Grant Thornton.
- Ford India Pvt Ltd, which exports cars and engines made in India to 37 markets worldwide, plans to take that number to 50 over the next few years. “We want to make India an export hub for low displacement engines and small cars,” said Mr Joginder Singh, President and Managing Director, Ford India.
- India's IT-business process outsourcing (BPO) industry revenue is expected to cross US$ 225 billion by 2020, according to a Confederation of Indian Industry (CII) report, titled 'The SMAC Code – Embracing New Technologies for Future Business'.
- Public cloud services market in India is expected to grow by 37.5 per cent in 2013 to touch US$ 434 million. This is an increase of US$ 119 million from the US$ 315 million forecast for 2012, according to a study by information technology research and advisory firm, Gartner.