India's unique and vast geography, endowed with diverse topography, has made it one of the most attractive investment destinations in the world. It is the world's largest democracy with stable policy environment, law and order as well as responsive administrative set up. It has become a global resource for various manufacturing and services industry.

The diverse economy of India encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries and a multitude of services. With the largest area of arable land, India is one of the world’s biggest food producers. It is the largest producer of milk, sugarcane and tea as well as the second largest producer of rice, fruit and vegetables.

India's pool of technical manpower base with an increasing disposable income and its burgeoning market have all combined to enable India emerge as a viable partner to global industry. It is the preferred hotspot for organizations keen to outsource their R & D activities, software development work, customer contact centers or IT enabled business processes.

INVESTMENT OPPORTUNITIES

• The top sectors attracting highest Foreign Direct Investment (FDI) inflows into the country are:- electrical equipments, services sector (financial and non financial), telecommunications, transportation industry, fuels, chemicals, construction activities, drugs and pharmaceuticals, food processing, cement and gypsum products. Huge investment potential exists in the upcoming Knowledge Process Outsourcing (KPO) sector and the real estate industry.

• India is poised to become a large commercial and defence aircraft market. With rising passenger traffic and increasing military and defence expenditures, the demand for aircrafts is expected to increase. Boeing expects a demand of between 900 to 1,000 commercial aircraft worth USD100 billion approximately in the next 20 years. This also suggests that a significant portion of business opportunity could accrue to India, due to the associated offsets.

 

• The competitive advantages that Indian agriculture processes are (a) Favourable agro-climatic zones (b) Large irrigated lands (c) Gap between present productivity and potential productivity and (d) Availability of skilled, educated, technical and scientific manpower.

• Total food production of India is estimated to double in the next ten years. Hence there is an opportunity for large investments in food and food processing technologies, skills and equipment. The major interventions in this context are, for example, Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits and Vegetables, Fisheries, Milk and Milk Products, Meat and Poultry, Packaged / Convenience Foods, Alcoholic Beverages and Soft Drinks and Grains. Health food and health food supplements are other rapidly rising segments of this industry. The Food Processing Industry sector in India has been accorded high priority by the Government of India, with a number of fiscal relief and incentives, to encourage commercialisation and value addition.

• Biotechnology has vast potential to grow in India. Indian biotech sector stands 3rd in the Asia pacific region in terms of number of companies, about 40% of these are in Biopharma segment and the rest are in Agri Biotech, Bioinformatics, industrial Biotechnology and Bioservices. These companies provide high-level services in the drug discovery, validation, genomics, proteomics and other allied areas.

 

INVESTMENT OPPORTUNITIES

INVESTMENT OPPORTUNITIES• India is also emerging as the world's largest trading centre for

gold targeting US$ 17 billion by 2011. The industry has the best skilled manpower for designing and producing high volumes of exquisite jewellery at low labour costs. India is the largest diamond cutting and polishing centre in the world—the industry enjoys 60 per cent value share, 82 per cent carat share and 95 per cent share of the world market in terms of number of pieces. In other words, nearly 9 out of 10 diamonds sold worldwide are cut and polished in India.

• India Textile Industry is one of the largest textile industries in the world. Today, Indian economy is largely dependent on textile manufacturing and exports. India earns around 27% of the foreign exchange from exports of textiles. Further, India Textile Industry contributes about 14% of the total industrial production of India. The Indian Textile Industry contributes approximately 12 percent to industrial production, 15 per cent to the manufacturing sector, 4 percent to the GDP and 12 per cent to the country's total export earnings.

INVESTMENT OPPORTUNITIES• The services sector has come to play an increasingly dominant role in

the economy accounting for 59.6 per cent of the overall average growth in GDP in the last eight years between 2000-01 and 2007-08.

• Travel and tourism industry is the second highest foreign exchange earner for India.

• Key drivers for Indian Healthcare sector are: Medical Value Travel or Medical Tourism World class treatment and benefits at a fraction of the Cost (almost 1/10th) with no waiting time for surgeries as compared to advanced nations like UK and US where waiting period is substantially longer.

• India is considered as a pioneer in software development and a favorite destination for IT-enabled services. Today, Indian IT companies such as Tata Consultancy Services (TCS), Wipro, Infosys, HCL are some of the renowned names in the global market for their IT prowess. Global giants like IBM, Motorola, Microsoft, General Electric and many others are using the successful outsourcing strategy and keeping ahead of their rivals - thanks to the competitive advantage gained by investing in India. With only a fraction of the US$ 300 billion market potential addressed so far, a significant space for growth is available.

• India is referred to as the back office of the world owing mainly to the Information Technology-enabled Services (ITeS) sector.

INVESTMENT OPPORTUNITIES• Manufacturing sector contributes about 15% of India’s GDP and

50% to the country’s exports. Micro, small and medium enterprises (MSMEs) both in manufacturing and service enterprises account for nearly 45 % of India’s manufacturing output.

 • The development of adequate infrastructure has been identified as

the most critical prerequisite for sustaining the current growth momentum of the economy and to ensure inclusiveness of the growth process.

• India’s government has set in place policies and special economic zones to promote investment in its industrial sector, and several key domestic companies have unveiled ambitious expansion plans for the next few years.

• The annual sales of the capital goods industry was about Rs.110,000 crores during 2008-09 though the market is more than Rs 300,000 crores.

• India is now a supplier of a range of high-value and critical automobile components to global auto makers such as General Motors, Toyota, Ford and Volkswagen amongst others.

 

COMPOSITION OF TRADE

Commodity %Share

AGRI & ALLIED PRDTS 9.30

MARINE PRODUCTS 0.95

ORES & MINERALS 4.27

LEATHER & MNFRS 2.09

GEMS & JEWELLERY 11.55

SPORTS GOODS 0.09

CHEMICALS & PRDTS 13.98

COMPOSITION OF TRADE

Commodity %Share ENGINEERING GOODS 23.15

ELECTRONIC GOODS 2.61TEXTILES 10.46HANDICRAFTS &CARPETS 0.64PETROLEUM PRODUCTS 18.27UNCLASSIFIED EXPORTS 2.16

INDIA HOLDS THE FUTURE

• Domestic manufacturing becoming competitive• Interest Rates Moving southward• Manufacturing meeting international standards• Huge investment in R&D• Infrastructure development to cut logistic cost• Strategic access to markets

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ABOUT FIEO• Apex body of all export promotion

organizations in Indian• ISO 9001:2000 certified organisation• Represents directly and indirectly 1,00,000

exporters from India covering 60% of India’s exports

• Pan India presence having offices at New Delhi, Kolkata, Mumbai, Chennai, Bhubaneshwar, Bangalore, Hyderabad, Kanpur, Shilong and Ahmedabad

ABOUT FIEO (Contd.)• Promoting Exports– Provides e-platform to Buyers/ Sellers through huge network

of members & non-members– Organises exchange of business delegations– Organises Made in India Show, Trade Fairs and exhibitions

across the globe, particularly in untapped countries.– Empowers new entrepreneurs, particularly from micro, mini

and small and medium enterprises with various facets of international trade.

– Conducts Market Surveys Data Analysis and Dissemination of Information

FIEO Marketing platform

• Please visit FIEO website - http://www.fieo.org

• Type the name of the product/service you want to source from the exporters and click on the "Search" button on the right hand side of the home page available in the section titled "Search, Select & Send Business Queries to Indian Exporters".

• List of exporters dealing in the desired product / service gets listed.

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FIEO Marketing platform(Contd)

• Select the companies whom you would like to send your business query and click on "Submit" button.

• Then type in the particulars of the co. desiring to source products/services and the business query the co. would like to forward to the exporters. Thereafter click on "Submit" button.

• The business query will get forwarded to the selected exporting companies.

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