Major initiatives, policy changes and a slew of reforms have put India on the global industrial map as one of the fastest growing economies and as one of the most attractive investment destinations in the world.
Fastest Growing Economy
- With the International Monetary Fund (IMF) predicting that India is likely to retain the status till 2020. With the Gross Domestic Product (GDP) of the country growing at more than 7% since 2014, the IMF has kept projections for India’s growth in 2018-2019 at 7.6%.
- According to the World Bank, India is also the third-largest economy in the world regarding its purchasing power parity with the GDP of over USD 2.1 trillion.
- India is the fastest growing large economy in the world today, impressively overtaking China in 2015.
- It was named amongst the top 10 Foreign Direct Investment (FDI) destination in 2015.
- In recent years, India has emerged as one of the most attractive destinations not only for investments but also for Doing Business, jumping by 12 places in Ease of Doing Business rankings between 2014 and 2015 (Source: Ease of Doing Business, World Bank).
- Foreign exchange reserves have been at a comfortable level over recent years. Currently, India’s reserves stand at USD 371.279 billion (Source: Reserve Bank of India as on 9th September, 2016).
- India is expected to have the share of youth in total population at around 32.3% in 2030. The share reached its maximum in the year 2010.
- The proportion of working age population in India is likely to reach more than 64% by 2021, with a large number of young people in the 20-35 age group (Source: Economic Survey 2014).
- If India continues its recent growth trend, average household incomes will triple over the next two decades and it will become the world's fifth largest consumer economy by the year 2025 (Source: The Bird of Gold, McKinsey Report)
- India is expected to be the largest supplier of university graduates in the world by 2020 (Source: Morgan Stanley Research)
- Major FDI policy reforms have been made in a number of sectors, such as Defense, Construction Development, Pensions, Broadcasting, Pharmaceutical and Civil Aviation
- Foreign investors can invest in India either on their own or as a joint venture, as may be required in a few sectors
- Barring a few reserved sectors, 100% FDI is allowed through the automatic route in several fields, without the need of Government approval, namely Automobile, Food Processing, Construction, etc
- In the Union budget 2016-17, the Government has emphasized the need to increase manufacturing as a percentage of GDP
- The Central and State Governments have sector specific policies, incentives and subsidies to promote manufacturing
- Increased allocation in the budget to improve infrastructure, which is critical in facilitating future growth