Let me tell you Currently India's approximate population is 1.0009 Billion. The Indian middle class is large and growing; wages were low and now it is best in the various industry segments; many workers are well educated and speak English; investors are optimistic and local stocks are up; despite political turmoil, the country presses on with economic reforms. But there is still cause for worries-

With a billion people, the Republic of India is the world's largest democracy. With a population nearly four times that of the United States, India modeled its government on the British parliamentary system, with a healthy dose of influences from the United States and the rest of Europe.

Let me share an example with out taking the name of the organization, one organization in India did a massive campaign on Milk. Requesting people and children with the advantage of the drinking Milk. As a matter of fact their sales of milk got increased by way of increase in consumption per person per day per family. Resultantly prices of Milk were increased in other part of world including USA because of the raise in demand in the largest democracy of the world. This is off-course the power of the demand.

There is enough market in India for any product you take of any category. Indian government has opened gates for world to come to India and explore the power of demand. Only thing is needed is the right company with the willingness to do the business with a long term goal.

Today, during the time India has emerged as a super power in IT, software and IT enabled services.

India has undergone a paradigm shift owing to its competitive stand in the world. The Indian economy is on a robust growth trajectory and boasts of a stable annual growth rate, rising foreign exchange reserves and booming capital markets among others.

Quarterly GDP at factor cost at constant (1999-2000) prices for Q2 of 2008-09 is estimated of showing a growth rate of 7.6 per cent over the corresponding quarter of previous year. The economic activities which registered significant growth in Q2 of 2008-09 over Q2 of 2007-08 are, manufacturing at 5 per cent, construction at 9.7 percent, trade, hotels, transport and communication at 10.8 per cent, financing, insurance, real estate and business services at 9.2 per cent, and community, social and personal services at 7.6 percent. The growth rate in agriculture, forestry & fishing is estimated at 2.7 per cent in this period.

GDP at factor cost at current prices in Q2 of 2008-09, is estimated of showing an increase of 18.7 per cent. The wholesale price index (WPI), in respect of the groups, food articles, fish, minerals, manufactured products, electricity and all commodities, has risen by 6.6 per cent, 3.3 per cent, 19.3 per cent, 11.1 per cent, 1.4 per cent and 12.4 per cent, respectively during Q2 of 2008-09, over Q2 of 2007-08. The consumer price index for industrial workers (CPIIW) has shown a rise of 9.0 per cent during Q2 of 2008-09 over Q2 of 2007-08.

There is ample reason for India's viability as a destination for foreign investment. In addition to the above-mentioned macroeconomic indicators, higher disposable incomes, emerging middle class, low cost competitive workforce, investment friendly policies and progressive reform process all contribute towards India being an appropriate choice for investors.

The Indian Government is committed in its efforts to maintain a healthy growth rate and provide a conducive policy environment to the enterprises, both public and private, to invest and grow their business in the country. To this end, the Government has liberalized the foreign investment regime substantially over the last decade. Today, foreign direct investment is allowed in almost all sectors barring a few sensitive areas such as defence. Further, FDI is allowed in most of the sectors under the automatic route, except a few, where approval from the Foreign Investment Promotion Board is required.

India's foreign trade policy has been formulated with a view to invite and encourage FDI in India. The process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

The FDI policy rationalization and liberalization measures taken by the Government have resulted in increased inflows of FDI over the years. Foreign direct investment (FDI) inflows during 2007-08 stood at $24.57 billion, up 56.50 per cent compared with $15.7 billion in 2006-07. If reinvested earnings and other capital inflows are also included, the total inflows in 2007-08 add up to US$ 32.43 billion compared to US$ 22.08 billion during the same period last year.
During the period January-September of the Financial Year 2008, the FDI inflows have been US$ 29.09 billion as against US$ 13.70 billion received during the corresponding period of year 2007, registering a growth of 112%.

FDI can be divided into two broad categories: investment under automatic route and investment through prior approval of Government. The pick up in FDI inflows further reflects growing investor interest in the Indian economy on the back of strong fundamentals and simplified procedures.

The 10 sectors attracting highest FDI into India are: Service sector, Computer software & hardware, Telecommunications, Construction activities, Housing & Real estate, Automobile Industry, Power, Metallurgical industries, Petroleum & Natural gas and Chemicals.
The 10 top investing countries are: Mauritius, Singapore, USA, UK, Netherlands, Japan, Germany, Cyprus, France and U.A.E..

In addition to FDI, Foreign Institutional Investment (FII) is also flowing into India. Qualified foreign entities (other than those predominantly owned by non resident Indians) seeking to undertake portfolio investments in India are regarded as Foreign Institutional Investors (FIIs). Eligible institutional investors that can register as FIIs include asset management companies, pension funds, mutual funds, banks, investment trusts, nominee companies, incorporated/ institutional portfolio managers, power of attorney holders, university funds, endowment foundations, charitable trusts and charitable societies.

HASSLES & ADVANTAGE

Infrastructural hassles

The rapid economic growth of the last few years has put heavy stress on India's infrastructural facilities. The projections of further expansion in key areas could snap the already strained lines of transportation unless massive programs of expansion and modernization are put in place. Problems include power demand shortfall, port traffic capacity mismatch, poor road conditions. However, most of the project for road widening, and making of the Express way for National highway are near to completion. Indian Bureaucracy Although the Indian government is well aware of the need for reform and is pushing ahead in this area, business still has to deal with an inefficient and sometimes still slow-moving bureaucracy. Diverse Market The Indian market is widely diverse. The country has 17 official languages, 6 major religions, and ethnic diversity as wide as all of Europe. Thus, tastes and preferences differ greatly among sections of consumers.

Therefore, it is advisable to develop a good understanding of the Indian market and overall economy before taking the plunge. Research firms in India can provide the information to determine how, when and where to enter the market. There are also companies which can guide the foreign firm through the entry process from beginning to end --performing the requisite research, assisting with configuration of the project, helping develop Indian partners and financing, finding the land or ready premises, and pushing through the paperwork required.

Advantage India

• Progressive movement towards delicensing and deregulation.
• India is the world's largest democracy.
• The gross domestic product grew by 8.9 percent in the first quarter of 2006-07
• Large pool of young skilled labour force, cost effective production facilities, large domestic market.
• Capacity upgradation in infrastructure, industrial base and intellectual capital.
• Progressive tax reforms.
• Progressive opening of the economy to FDI.
• Portfolio investment regime liberalized.
• Liberal policy on technology collaboration.
• Investor friendly policies.
• Acceleration of the privatization process and restructuring of public enterprises.
• Good network of research and development.
• Economic and political stability.

Manufacturing

Manufacturing is the backbone of the economy. Global competitiveness in manufacturing fosters growth, productivity and employment and strengthens the agriculture and service sectors. India has the potential to become a manufacturing hub for textiles, automobiles, steel, metals and petroleum products for the world market. India has emerged as a premier global manufacturing hub with the foray of a number of Multi National corporations such as General Motors, Ford, Suzuki, Hyundai, Coco Cola, etc.

The current scenario portrays significant improvement in the performance of beverages and tobacco, cotton textiles, textile products, basic metal and alloy industries, non metallic mineral products, transport equipment and other manufacturing industries. Services Since the beginning of the tenth five-year plan, industry and services have acted as twin engines propelling overall growth of the economy. Service sector growth continued to be broad based. Among the three sub sectors of services, trade, hotels, transport and communication services continued to lead by growing at double-digit rates since 2003-2004. Impressive progress in the railway passenger network and production of commercial vehicles, rapid addition to the existing stock of telephone connections, particularly mobiles, growth in the financial services (banking, insurance and real estate) and the construction boom were some of the driving segments of the service sector Healthcare Industry: The Indian healthcare industry is expected to increase in size from its current 12.72 billion to 29.6 billion by 2012. Healthcare in India is achieved through a mixture of Public sector, private players and Public Private Partnership. India will spend 33.8 billion on healthcare in the next five years as the country, on an economic upsurge, is witnessing changes in its demographic profile accompanied with lifestyle diseases and increasing medical expenses. Revenues from the healthcare sector account for 5.2 per cent of the GDP and it employs over 4 million people. By 2012, revenues can reach 6.5 to 7.2 per cent of GDP and direct and indirect employment can double.

The government has identified healthcare as a priority section and hence have taken some measures to promote one of its most important segment Medical Device Market.

These are :

• Import license requirements have been cancelled, majority-owned subsidiaries are possible, and dividends can be paid out abroad.
• Reduction in import duty on medical equipment from 25 per cent to 5 per cent.
• The Union Health Ministry has mooted a proposal to set up a series of Medical Parks all over the country to enable domestic health industry to manufacture health equipment at large scale.
• Around 15-20 Health Cities are expected to come up in India in the next 5 years.
• Health Cities are looking at catering to larger populations by offering facilities such as hotels, residential facilities, recreational facilities of spa, gym and even golf courses.
• India is promoting the "high-tech healing" of its private healthcare sector as a tourist attraction. Its a developing concept in India wherein people from the world over come to India for their medical needs.
• It has been found out that an operation in the US is 6 times more costlier than in India with the same expertise and hence Medical tourism is catching up fast in India.