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The Indian economy has continuously recorded high growth rates and has become an attractive destination for investments, according to Ms Pratibha Patil, the Indian President. "Today India is among the most attractive destinations globally, for investments and business and FDI had increased over the last few years," said Ms Patil.
India's economic growth is expected to remain robust in 2012 and 2013, despite likely headwind of double-dip recessions in Europe and the US, according to a United Nations' annual economic report - World Economic Situation and Prospects 2012. The Indian economy is expected to grow between 7.7 per cent and 7.9 per cent this year, as per the report.
India is the second most preferred destination for foreign investors, according to the report 'Doing Business in India' by Ernst & Young. The report explores India's key sectors, investment climate, funding scenario, laws and regulations, to aid companies that are doing, or plan to do business in India.
The wealth of high net worth individuals (HNIs) in India, is set to grow by a compounded annual growth rate (CAGR) of 23 per cent over the next four years and will touch a staggering Rs 249 trillion (US$ 5.05 trillion), highlighted a report by Karvy Private Wealth - the wealth management arm of the financial services firm Karvy Group.
India has emerged as the world's top recipient of officially recorded remittances for the fourth straight year. India is expected to receive US$ 58 billion this year, followed by China, and Mexico, as per the latest issue of the World Bank's Migration and Development Brief.
The Economic Scenario
Innovation and efficiency are the keys to boost the growth of exports from the country, according to Mr M Veerappa Moily, Union Minister for Corporate Affairs. He also suggested that there is a need to develop innovation centres at the district levels to boost exports.
- Exports from special economic zones (SEZ) grew by 17 per cent to Rs 260,973 crore (US$ 52.99 billion) during April-December 2011 from Rs 223,132 crore (US$ 45.31 billion) during the corresponding period in the previous year, according to a statement by the Export Promotion Council for Export-oriented Units and SEZs (EPCES)
- The total amount of foreign direct investment (FDI) equity inflows during April 2011- November 2011 stood at US$ 22,835 million, according to the latest data published by Department of Industrial Policy and Promotion (DIPP)
- The Government of India has approved 20 proposals of FDI worth Rs 1,935.24 crore (US$ 392.94 million), according to an official statement. The approvals were given, based on the recommendations of the Foreign Investment Promotion Board (FIPB)
- "India's GDP is expected to grow at 7.7 per cent, which clearly underlines India's potential as an investment destination. The fact that FDI has increased by 31.5 per cent across major sectors further evidences the attractiveness of the Indian economy,” as per Gaurav Karnik, Tax Partner, Ernst & Young
- Foreign exchange reserves stood at US$ 293.383 billion for the week ended February 10, 2012, according to the Reserve Bank of India's (RBI) weekly Statistical Supplement
- With 56 deals, November 2011 has recorded the maximum number of private equity (PE) investment deals in a month. Real estate, hospitality and construction (RHC) sectors received the highest amount of investments. The investment activity during November 2011 was also significantly higher compared with the corresponding period last year, which was US$ 402 million across 18 deals in November 2010
- India Inc raised US$ 1.6 billion through external commercial borrowings (ECBs) in November 2011. Under the automatic route, 78 companies raised US$ 1.3 billion. At present, the Government allows the companies to raise up to US$ 750 million under the automatic route in a year
- Overseas direct investment by Indian companies has increased at a steady pace in 2011-12, with cumulative investments amounting to US$ 23.81 billion, according to the Reserve Bank of India (RBI) data. Investments by Indian companies in overseas joint ventures (JV)/ wholly-owned subsidiaries (WOS) aggregated US$ 2.74 billion in November 2011
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