Indian economy is growing, despite the economic crisis that engulfed the world, stated Mr Anand Sharma, Union Minister for Commerce, Industry and Textiles, Government of India, while addressing a session at the 11th Pravasi Bharatiya Divas 2013. Mr Sharma further highlighted that the national investment rate is around 33-34 per cent, and is expected to increase to 36 per cent by the end of 12th Five Year Plan (2012-17). This is positive news for the Indian economy.
India has been adjourned the fifth best country in the world for dynamic growing businesses, as per the Grant Thornton Global Dynamism Index. The index gives a reflection of how suitable an environment the country offers for dynamic businesses.
Indian tax climate was also considered to be reasonably favourable and Indian economy continued to be an attractive investment destination, according to a survey conducted by Deloitte Touche Tohmatsu Ltd (Deloitte).
Moreover, India was ranked fourth on Ernst & Young's (E&Y) renewable attractiveness index, second on the solar index, and third on the wind index, as per the latest study by E&Y and UBM India Pvt Ltd.
The Economic Scenario
India is expected to be the second largest manufacturing country in the next five years, followed by Brazil as the third ranked country, according to Deloitte.
The economy of India is growing steadily. Some of the other important economic developments in the country are as follows:
- The HSBC's Services Purchasing Managers' Index (PMI) touched a 12 month high at 57.5 points in January 2013 as compared to 55.6 in December 2012
- The net direct tax collections in India rose by 13.70 per cent to record Rs 368,322 crore (US$ 67.96 billion) during April-December 2012, as compared to Rs 323,956 crore (US$ 59.77 billion) during the corresponding months in 2011
- Indian companies have raised US$ 4.29 billion, through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) in October 2012, to fund modernisation, foreign acquisitions, import of capital goods and onward lending
- The total value of private equity (PE) and mergers & acquisitions (M&A) deals in November 2012 increased five-fold to US$ 10.1 billion, as per a study by Grant Thornton India. The total value of PE deals in November 2012 rose to US$ 39 billion from US$ 0.4 billion in November 2011, indicating that PE players preferred concentrated exposure to their value investments
- The cumulative amount of foreign direct investments (FDI) equity inflows into India were worth US$ 187,804 million between April 2000 to December 2012, while FDI equity inflow during April 2012 to December 2012 was recorded as US$ 16,946 million, according to the latest data published by Department of Industrial Policy and Promotion (DIPP)
- Foreign institutional investors (FIIs) made a net investment of US$ 68.46 million in the equity market and US$ 14.92 million in the debt market upto February 18, 2013, according to data released by the Securities and Exchange Board of India (SEBI).