January 2015 \ Business & Investment \ Investment in India
OPPORTUNITIES GALORE

By Narinder Wadhwa

We all know India is called the land of opportunities. There are opportunities in the form of setting up business, higher education, investments, etc. for the people in India as well as people outside India. When we specifically look at investments opportunities in India, there are varieties of investment avenues for various kinds of investors across different asset classes whether it is Equity, Debt, Commodity, Real Estate etc.

Out of these different asset classes, historically Equity has performed extremely well. In the last 23 years i.e. since 1981, the 10 years moving average return of Sensex has been 16.04% p.a., whereas Gold has given 9.47%, PPF has been 8.31%, Residential Real Estate SKI provides a whole range of products and services to fulfill the needs and requirements of a diverse client portfolio:

• Providing efficient Stock Broking Services

• Providing stock market related consultancy

• Funds Management

• Portfolio Management

• Depository Services

• Multi Commodity Trading

• Corporate advisory services

• Insurance

• Public IPO Issues, bonds, mutual funds etc.

India has a large sized middle class, which is further expanding substantially, offering a big fat market for foreign products and services. In fact, 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, according to a McKinsey report in 2010.

India provides great avenues for investments in various sectors like Automobile Components, Biotechnology, Construction, Defense Manufacturing, Education, Electrical Machinery, Electronic Systems, Food Processing, Gems & Jewellery, Healthcare, IT & BPM.

Foreigners can directly invest in India either on their own or as a joint venture, with a few exceptions with regard to investment limits and sectors. No government approval is required for FDI in virtually all sectors except a small negative list formulated by government. Indian Capital Markets are open to NRI, FII's to reap the benefit of India Growth story in all above mentioned sectors.

Everyone is optimistic with the Modi-fied Government at the Centre, which can bring the change in the industry by introducing new regulations for different regulatory bodies as well as different sectors, for bringing in transparency and protecting investor's interest, if these aspirations are fulfilled, investment in the equity sector would increase by leaps and bounds as I firmly believe that Equity was and will be one of the most wealth generating investment tool and we have a live example of India's Warren Buffet - Mr. Rakesh Jhunjunwala.

It is also the next big wealth generating opportunity for those who have never invested in equities. Though it's said, "Past performance is not necessarily indicative of future results"; but it is also said, "history repeats itself", and equity has been delivering similar returns what it has given in the past!

—The author is Managing Director of SKI CAPITAL SERVICES LTD




Tags: Investment

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