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Domestic Investments

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Domestic Investments

November, 2011


The Indian investment scenario has undergone quick transformation in the post liberalisation phase. The new regime did away with licensing, capital controls, quantitative restrictions on imports and decontrolled interest rates and reduced restrictions on foreign imports. Therefore, these led to a noteworthy improvement in the 'investment climate', creating incentives for private investors, both domestic and foreign. Moreover, Central and State Governments continue to offer a number of incentives for investment projects. As a result, the share of private investment rose sharply from 12.5 per cent of gross domestic product (GDP) in the eighties to 15.4 per cent in the nineties.

India is gradually emerging as a popular investment destination because of quick-paced economic growth and with more and more companies scaling up in small cities and towns, according to investors at the recent India Economic Summit of the World Economic Forum in Mumbai. Other factors contributing to growth comprise an expanding middle class, a large population with its major chunk aged 15-35 years and increasing urbanization.

Investors felt that it is difficult to be bullish on investment opportunities in the short term, but India is extremely attractive from a longer-term perspective.

Investors also felt that it's a good time for those who have strong balance sheets to make investments as valuations are low and assets are available at inexpensive rates. "Wait up and you will make money. It's not a time for short term realization," as per Udayan Sen, Chief Executive and Managing partners, Deloitte.

At the Summit it was also discussed that Information technology (IT) and information technology enabled services (ITeS) companies will also continue to be attractive.

Bengaluru, one of the major Indian economic centres, is the fastest growing cities in the country. The city has often acted as a window to deals and investment opportunities across various sectors not only in Karnataka, but also in its neighboring states Tamil Nadu and Andhra Pradesh.

Investment Options in India

There are various investment options 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 and many more.