Incredible India

Incredible India

As India becomes one of the hottest engines of the world economy, eyeing growth rates of well over 8%, NRIs too are heading homewards for investment. Here’s a lowdown on several key sectors where the pot of gold is sizeable

Empire Bureau Report

Nation On The Move: India is well on course to grow at rates of over 8% over tha next several years. The India growth story is too big to miss now 
For all those who still harbour doubts about India’s economy, here’s news. India has moved up five notches to 50 in the Global Competitiveness ranking in the World Economic Forum’s Global Competitiveness Report 2005. India’s improvement in ranking has been largely on the back of a higher mark in the area of technology. Since technology has become a major driving force in today’s knowledge-based economy, it touches everything from the range, quality and price of goods produced in a country. The degree to which rates of growth and productivity can be sustained depends on the technological readiness and its impact on life. 

India has fared well in most technology-related indicators in the executive survey of the WEF report with technological readiness at 28 and firm-level technology absorption at 19, leaving China (68 and 37) and Brazil (56 and 46) way behind. In prevalence of foreign technology licensing, India stands at 7, having moved up from 8 in the 2004 report. In comparison, Malaysia is ranked 9, Philippines 19, Brazil 37 and China 71 in 2005. Technological readiness refers to a combination of factors that facilitate and enable the technological capacity of a country. This includes the general availability of technologies, and the penetration rate of information and communication technologies (ICT). ICT plays a significant role in the establishment of effective and rapid communication systems and in providing efficient infrastructure for commercial transactions. 

The demand for petroleum products is estimated to grow at 6% to reach the level of 370 mt in 2025. The investment in marketing infrastructure during this period is estimated to be around $32 billion

Investment Policy

In line with its mission of formulating a transparent investor friendly environment the government has done away with the complex pre-entry approvals. FDI today can enter India in most sectors through the automatic route.

Automatic Route 

Foreign investment is freely allowed in most sectors including the services sector. Under this, the companies need only to inform the Reserve Bank of India within 30 days of receipt of funds and issuance of shares to the foreign investor.
Proposals for investment in public sector units, as also for Export Oriented Units (EOUs)/ Export Processing Zones (EPZs)/ Special Economic Zones (SEZs)/ Electronic Hardware Technology Parks (EHTPs)/ Software Technology Parks (STPs) units also qualify for automatic route subject to the parameters specified in the Government approval list.


March 2006

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