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 WHY INDIA? > INFRASTRUCTURE & PORTS > COSTS > OURSOURCING > FTA & AEC > MANUFACTURING

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Top States of India:
Maharashtra | Andhra Pradesh | Tamil Nadu

Industrial Parks in India:
in Maharashtra | Andhra Pradesh | Tamil Nadu

Foreign Direct Investment (FDI) and Investment in India

Industries in India:

India Infrastructure and plan for improvement

Government links

Other Useful Resources:

 

 









Data and Research
bangalore

Why India?

India is nearly one quarter of the World's population
India has been growing at 6% or better rates for a decade and at an 8% or better level for the last 3 years.  Indian growth in its service economy has been historic and manufacturing economy is now ramping up sharply.
  The advantages of low cost and skilled made India a globally competitive manufacturing destination
India also has offered talent pool of skilled professionals and English speaking population
India has increasing disposable incomes and significant domestic demand.  Rising per capita income and changing demographic distribution are conducive to growth. India has the highest proportion of population below 35 years-70 percent (potential buyers), which means that 130 million people will get added to the working population between 2003 and 2009.
The government is also pursuing reforms and liberalization
At present, over 200 of the Fortune 500 companies from the U.S., the UK, Germany, France, Japan, Netherlands, South Korea, Switzerland, Canada, and Sweden are present in India.
A favorable foreign investment environment: freedom of entry and exit, investment, location, choice of technology, import and export, and rule of law.
India has increasingly moved from an agro based economy and has emerged as a service oriented economy.
Today India produces more than 50,000 computer professionals and 360,000 engineering and management graduates each year
Developed and well regulated banking system of over 63,000 branches supported by a number of international banks, insurance joint ventures, national and state level financial institutions.
WTO commitments

India's Challenges:
 
infrastructure

Although India has tremendous potential, the reality of India today is that it is still a developing economy with a great deal of poverty. 

Infrastructure inadequacies in rural and urban areas:
roads, ports, airports, communication, and power have constrained India's growth.

Bureaucratic red tape, rigid labor laws, and its inability to build infrastructure fast enough also holds India back

Some research indicated that some of the factors that prevent the fast growth of foreign direct investment (FDI) across the states of India include labor conflicts and market regulations, institutional entry barriers,  poorly functioning financial markets, limited domestic demand, credit and market conditions, and other state-level economic indicators.

Tariff rates continue to remain high by international standards.

There is a lack of decentralized decision-making at the level of state governments

Banking and insurance systems are not competitive

Labor laws are overly stringent




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