Monday, August 27, 2007
Investing in India?
Massive investment in India is predicted in the next decade as it takes its
rightful place on the global economic stage, according to Cross-border
Transactions: Spotlight on India, an Ernst & Young report.
In Singapore for the inaugural Ernst & Young Entrepreneur Of The Year World
Summit, Rajiv Memani, CEO & Country Managing Partner of Ernst & Young India,
said, “A new India is emerging – young, entrepreneurial, skilled and
competitive. The last few months have seen significant activity in foreign
investment. A very visible measure of this new confidence is that in the
next several months we expect US$15 billion worth of foreign investment, a
three-fold increase on the previous year.”
According to V V Ranganathan, Country Leader and National Director,
Entrepreneur Of The Year Awards, Ernst & Young India, “A robust
entrepreneurial culture has strengthened India’s position in the world
economy. As Indian businesses cross borders, they foster both wealth
creation and generation of employment opportunities. Given the right
impetus, there is very strong potential for more Indian businesses to become
truly world class players.”
Opportunities abound – across sectors.
Foreign investors, both strategic and financial, are increasingly entering
or expanding in the Indian market. And the big change, according to the
report, is that they are not just coming for outsourcing and IT
transactions. There is a far wider sectoral spread.
The value of M&A activity in India reached over US$9 billion in 2004 with
316 deals, more than double the value of 2003. “Foreign investors are seeing
huge opportunities in financial services in India after a reform in our
regulatory procedures. There is also a renewed investment focus on major
infrastructure projects whether they are in the telecoms, transport or
utility sectors. As much as US$200 billion worth of investment will be
needed to be injected into the domestic power sector alone,” says Memani.
With opportunities like these across India it is hardly surprising that
American and European Private Equity firms are flocking to the country.
Why is India such an attractive destination?
As well as the investment potential in the country, the report highlights
that India has a great deal going for it as an attractive location for
overseas investors. “We are a young country and a growing number of those
young people are well educated. India has had annual average economic growth
of 6% since the Millennium and disposable incomes are rising. When you
combine that with an economy which has low inflation and low interest rates
together with robust capital markets, a strong awareness of corporate
governance, and well-established legal and accounting systems, you do have
an appealing prospect for any company thinking of entering the Asian market
for the first time,” says Ranganathan.
rightful place on the global economic stage, according to Cross-border
Transactions: Spotlight on India, an Ernst & Young report.
In Singapore for the inaugural Ernst & Young Entrepreneur Of The Year World
Summit, Rajiv Memani, CEO & Country Managing Partner of Ernst & Young India,
said, “A new India is emerging – young, entrepreneurial, skilled and
competitive. The last few months have seen significant activity in foreign
investment. A very visible measure of this new confidence is that in the
next several months we expect US$15 billion worth of foreign investment, a
three-fold increase on the previous year.”
According to V V Ranganathan, Country Leader and National Director,
Entrepreneur Of The Year Awards, Ernst & Young India, “A robust
entrepreneurial culture has strengthened India’s position in the world
economy. As Indian businesses cross borders, they foster both wealth
creation and generation of employment opportunities. Given the right
impetus, there is very strong potential for more Indian businesses to become
truly world class players.”
Opportunities abound – across sectors.
Foreign investors, both strategic and financial, are increasingly entering
or expanding in the Indian market. And the big change, according to the
report, is that they are not just coming for outsourcing and IT
transactions. There is a far wider sectoral spread.
The value of M&A activity in India reached over US$9 billion in 2004 with
316 deals, more than double the value of 2003. “Foreign investors are seeing
huge opportunities in financial services in India after a reform in our
regulatory procedures. There is also a renewed investment focus on major
infrastructure projects whether they are in the telecoms, transport or
utility sectors. As much as US$200 billion worth of investment will be
needed to be injected into the domestic power sector alone,” says Memani.
With opportunities like these across India it is hardly surprising that
American and European Private Equity firms are flocking to the country.
Why is India such an attractive destination?
As well as the investment potential in the country, the report highlights
that India has a great deal going for it as an attractive location for
overseas investors. “We are a young country and a growing number of those
young people are well educated. India has had annual average economic growth
of 6% since the Millennium and disposable incomes are rising. When you
combine that with an economy which has low inflation and low interest rates
together with robust capital markets, a strong awareness of corporate
governance, and well-established legal and accounting systems, you do have
an appealing prospect for any company thinking of entering the Asian market
for the first time,” says Ranganathan.
Labels: Business, Economic, Investment
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