Why India

In India, FDI is considered as a developmental tool, which can help in achieving self-reliance in all the sectors of the economy. India, the largest democracy in the world, with its consistent growth/performance and abundant skilled manpower provides enormous opportunities for investment, both domestic and foreign. The salient features of the Indian Economy which makes it a top destination for foreign direct investments are-

• India has a huge middle class and is one of the youngest nations in the world; this enormous population is in itself a major attraction for any investor as it represents the sheer largeness of the Indian market.
• It is the second largest growing economy at present and hence offers huge potential to the investors.
• The huge technically competent workforce, fluent in English speaking and available at much cheaper rates as compared to the European economies is also one of the major attractions.
• Abundance of rich natural resources be it in the power sector or in the real estate sector, is also a huge benefit to the Indian economy.
• The changing scenario of the Indian economy particularly the liberalization of exchange regulations and trade policy, simplification of investment procedures and full commitment to safeguarding intellectual property rights are among other major policy initiatives taken by the Indian governance to lure foreign investors.

The yearly trend of FDI in India in absolute terms is shown in the graph, the amount of inflows is in billion$.