Trade Analytics

Investment in India

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Over the years, India has emerged as one of the fastest growing economies in the world and an attractive investment destination driven by economic reforms and a large consumption base. As per the estimates of Gross Domestic Product (GDP) for the first quarter (Q1) of 2019-20, the growth of real GDP for Q1 of 2019-20 is estimated at 5.0 percent.

A host of factors has enabled this growth, which includes a highly developed financial system, infrastructure requirements and proactive government regimes. Domestic and foreign investments both have had made an impact on the country’s growth. Between April 2000 and June 2019, India has received equity inflows of US$ 436.35 billion through Foreign Direct Investments (FDI). Foreign Portfolio/Institutional Investors (FPI/FII) have invested around Rs 12.92 trillion (US$ 184.91 billion) in India between FY02-20. During April-June 2019, Foreign Institutional Investment in India stood at US$ 18.42 billion. The domestic stock markets ranked second globally in terms of number of Initial Public Offer (IPO) raised with 161 IPOs offering US$ 5.52 billion up to November 2018.

The country is on a fast pace growth and is expected to become a US$ 5 trillion economy by 2022. Going by the estimates of Government of India, the country will need investments of US$ 4.5 trillion to build sustainable infrastructure by 2040.