Data and Research
India is nearly one quarter of the
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.
of low cost and skilled made India a globally competitive manufacturing
India also has
offered talent pool of skilled professionals and English speaking
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
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.
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.
India has tremendous potential, the reality of India today is
that it is still a developing economy with a great deal of
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
Tariff rates continue to remain high by international standards.
There is a lack of decentralized decision-making at the level of state
Banking and insurance systems are not competitive
Labor laws are overly stringent