Lot of reforms has been done and government has opened the Indian market for foreign investors in many sectors in last 10-15 years. Infrastructure, Information Technology, Education, Health, Banking, Medical, Manufacturing and Automobiles sectors have improved.
Long awaited Multi brand Retail sector was finally opened on 14thsep, 2012 for Foreign Direct Investment up to 51% ownership. Earlier in January, single brand stores were opened for up to 100% investment. It was a big move as Indian retail market is of US$ 450 billion and still small shops rule India.
It will further help the Agriculture sector. Lot of small companies has come up in Agriculture related sector and they are doing excellent. This sector employs 50% of the total work force. Lot of Improvement is expected in organic and medicinal farming. Company like Cropex Technology in Bangalore started in 2010 is now monitoring more than 12000 acres of land. Some USA based companies have shown interest in investing in Cropex. This is just one of the stories.
Wal-Mart, Carrefour, Tesco etc. in multi brand and IKEA, Nike, Apple etc. in single brand are ready to expand their market. IKEA is ready to invest US$ 1.9 billion in 25 stores. Coke is going to invest US$ 5.3 billion. It’s just the beginning.
Government has also initiated meetings for reforms in Insurance sector. Only 0.2 % of the total Indian population is having insurance compared to 75% in USA. And only up to 26% foreign investment is allowed.
Banking is in center responsible for every other sector growth. Central Bank that is Reserve Bank of India (RBI) has decreased the Cash Reserve Ratio (CRR) to 4.5% from 4.75% and Statutory Liquidity Ratio (SLR) to 23% from 24%. It will improve liquidity. 10 Public sector banks stocks rose by 20-33 % and other banks gained between 10-20 % in last 10 trading days.
Finance Minister P. Chidambaram told reporters “I am very confident that between now and Oct 30 since the government is expected to take a number of additional policy measures and also lay out the path of fiscal correction, the response of RBI on Oct 30 will be far more supportive of growth”.
Indian Rupee rose for 4th continuous week; closed at five-month high of 52.85 Vs US dollars.
The Grant Thornton Global Dynamism Index indicated that India is the fifth best country in the world for dynamic growing businesses. Key areas of rating were business operating environment, science and technology, labor and human capital, economics and growth and the financing environment.
India is the biggest democracy with population 1.2 billion. Literacy was 65% in 2000 which has improved to 74% in last 10 years. Improvement in literacy, Annual salary, Purchasing power, GDP, Economy reforms and basic developments will keep on increasing the Indian market size and Business opportunity in long term.