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Market Compass for India
Market Compass for India
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Market Compass for India

19/12/2018

India continues to be a bright spot in the world economy and is expected to grow at a rate of 7.3% (in terms of GDP) in the year 2018-19 and 7.5% in the next two years. The year 2017-18 has witnessed a number of remarkable initiatives from the government, notably, relaxing of foreign direct investment (FDI) norms across various sectors such as financial services, stock exchanges, single brand product retail trading, etc. making India the pre-eminent destination for foreign investment

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Asia’s third-largest economy, India is predicted to be the world’s fastest-growing major emerging economy for the next three years, thanks mainly to the economic and fiscal reforms implemented by the government and the efforts of its market regulators and central bank to liberalise the investment environment. India’s capital markets, which are increasingly on par with their international counterparts in terms of regulatory strength and ease of access, present a vast range of attractive investment options for those looking to strategically diversify their portfolios.

The government has mandated the clearance of all FDI proposals that need approval within 10 weeks of application. The new Goods and Service Tax (GST) regime which is  a landmark reform of the indirect tax system,  is expected to simplify compliance procedures and eliminate barriers to trade with a uniform tax rate. In a testament to the impact of such reforms, India recently recorded its biggest jump in the World Bank’s 2018 ease of doing business rankings, moving up 30 spots to 100th place. As the world’s largest democracy, India offers a stable political environment, a vast pool of talented human resources, and an increasingly affluent middle class that is driving domestic demand and growth across sectors. Plans are also underway to reform the banking and housing sectors, as well as allow greater foreign participation in a range of sectors, from insurance to aviation.

Unsurprisingly, India now attracts a growing number of global corporations and investors to its shores. From the tech majors of Silicon Valley to global retailers and the world’s biggest banks, most have sizable operations in the country and ambitions to grow. Meanwhile, a thriving startup environment driven by motivated and well-funded local entrepreneurs is helping the country’s renowned Information Technology sector move into exciting new areas such as fintech.

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