Successive progressive, industry-friendly governments, deep rooted reforms and a strong focus on far reaching labour and land reforms have helped India’s newest state emerge as a major industrial hub. This is helping India emerge as a preferred manufacturing destination for many foreign companies.
Global smartphone market leaders Apple and Samsung are eager to connect with Indian consumers. So, they are increasing their online presence in this country, a clear indication that foreign investors think discretionary spending will pick up very soon.
Gujarat, Haryana, Andhra Pradesh, Karnataka and others are offering foreign investors a slew of incentives such as refund of state taxes, exemption from land taxes and even tailor-made solutions to fit the requirements of each company to make themselves more attractive as investment destinations.
The REIT allotted 40.9 million units to a handful of foreign institutional investors including GIC and US based Capital Group.
The Modi government has had success in its efforts to reform the Indian judicial system, but more reforms are needed to speed up the delivery of justice in India.
Foreign portfolio investors have pumped in $3 billion into Indian stocks over the last seven trading sessions, reversing a two-month long trend, following the announcement of major liberalisation measures and the expectation that the economy will gradually lift itself out of the Covid-induced slowdown.
With 100% FDI allowances, tax incentives and a booming middle-class population, the ESDM sector presents enticing prospects for foreign investors entering the Indian market.
Nilesh Shah is the CEO of Kotak AMC and one of India’s most respected and sought after investment gurus. He also advises the Prime Minister and the government on economic and related matters. In this exclusive interview he discusses investment strategies and what is required to put India back on the high growth trajectory in the post-Covid world.
The move to privatise power distribution in union territories and the $12-billion line of credit to T&D companies will help nurse the sector back to health and make it far attractive for FDI to flow into.
In this last instalment of our series of analyses on India’s burgeoning solar sector, we explore some of the key areas of investment available for domestic and foreign investors.