For business owners, investing in the services or technology from other countries is a good way to establish a decent return on investment. India is of particular interest as a country to invest in. The Indian economy is growing at a rapid pace which means there is good potential for investment at this time. The country offers a wide range of investment opportunities including traditional manufacturing, distribution, and information technology. A lot of multinational companies and venture capitalists consider India as an important investment destination.
For the last several years, Indian pharmaceutical companies have created new avenues for growth by exploring innovative new technology. They have also made significant contributions to the world’s medical front. Most foreign companies today are investing in India because it is witnessing unprecedented economic growth and offers a wide range of opportunities. While American companies have already invested billions in India, they still continue to delay a tax on foreign profits earned in the country.
In view of these facts, the federal government of India has worked hard to support the foreign investment in India. In order to facilitate foreign direct investment (FDI), the Indian government has made it easy for foreign investors to avail of various benefits, such as tax concession, exemption on customs duties and indirect subsidies, reduction in import cost, etc. Various waivers have also been granted for certain categories of goods imported into the country, such as automobiles, machinery, IT equipment and consumer products. To encourage foreign investment in India and meet its increasing demand for technology, the federal government has taken certain important steps, including the establishment of the Information Technology Development Agency (ITDA), and the appointment of judges of the Supreme Court who are experienced in practicing in India.
As part of its effort to attract more foreign direct investment in India, the Indian government is also offering several other incentives. The Government of India has also announced several measures to enhance the infrastructure of the country so that it can attract and retain the attention of international companies. In this respect, it is planning to improve the existing airports, railway stations and major highways by investing huge amounts. At the same time, it will also work towards developing new infrastructures. Another incentive offered by the Indian government is the liberalization of various trade procedures.
The most important reason as to why foreign direct investment in India has increased over the years is because of the government’s policy of encouraging economic growth. The policy of the government encourages FDI through various measures. Among these measures, tax exemptions and special investment schemes are the most important ones. Several incentives have also been granted for an increase in infrastructure development in the country, which in turn, increases the ability of companies to attract investors from overseas.
There have been big powerful corporations investing in India including GMR, Ansal, Omaxe, Reliance, KSA Corporations, Essar, Unitech, Wipro, Reliance Communications and Videocon. These are just some of the leading multinational companies that have increased business opportunities in India through their Indian joint ventures and expansion projects. Even small businesses, which have made investments in various business opportunities in the past, now find it easy to access advanced and modern technology available in the Indian market. Thus, India continues to remain a key player in all types of global business structures.
