As the world’s economies recover from the effects of the COVID-19 pandemic, investors around the world are more willing than ever to part with their money.
When scouring countries for investment opportunities, they should look no further than India.
According to data published by NASDAQ This year, India is the fifth fastest growing economy in the world and has already had a notable rebound from the pandemic. There are excellent investment opportunities that could offer attractive returns across a range of sectors.
There are a number of reasons why investors should focus their capital on India. For one, in the financial year 2021, the country received its own the highest inflow of foreign direct investment ever of over $ 81 billion. This is due to a context of policy measures that have improved the ease of doing business in the country, attracting investment in projects focused on production capacity and the development of new infrastructure.
The biggest investors in India over the past year have been Singapore, the US and Mauritius, but the rest of the West could make a lot of money if they follow suit. India’s GDP is projected to grow 11% in the next financial year, the highest since their independence in 1947, and is estimated to become a $ 5 trillion economy within the same year.
This large expanding market size makes India an attractive prospect for foreign investors, with easy access to other emerging markets such as Bangladesh, Nepal, Pakistan, Sri Lanka and Myanmar.
Many of the world’s leading investors and venture capital funds have already succumbed to the allure of investing in India. Warburg Pincus and Prosus Ventures recently supported by the Good Glamm Group In a $ 150 million funding round, making it the latest Indian startup to become a so-called “unicorn” company, worth over $ 1 billion. Similarly, General Catalyst last month conducted a $ 160 million investment round in Mumbai-based Dhani Services, founded by Sameer Gehlaut.
Given the current geopolitical climate and how Western nations are reacting to China’s foreign policy decisions, many investors see India as a safer alternative. Tensions in the South China Sea are frightening large companies, especially those based in the United States, for fear that the friction between the two countries will affect their profits.
Many companies have also moved to prevent their supply chains from being so dependent on China following the coronavirus pandemic, focusing on domestic manufacturing instead. In comparison, India has relatively good relations with most Western nations and many companies have decided to move their manufacturing bases from China to India.
The Indian government recently made a political decision to encourage digital transformation across the country. This is another reason why it is becoming more and more attractive to investors. For a long time, many companies have chosen to outsource their IT departments and call centers to India, but with the expansion of digital technology across the country, it will soon become much more than that.
We are seeing a huge technological boom across India which is revolutionizing sectors such as finance, e-commerce, agriculture and medicine. This leads to greater investor confidence as the economy becomes more developed overall and venture capitalists who have found success in these industries in other countries will see India as an even more attractive place to invest.
It is reforms like this that boost investor confidence. The Indian government wants other countries to do business here. The country regularly ranks in the top 10 improvers in The “ease of doing business” of the World Bank ranking, which is partly due to the actions of the government.
India is undoubtedly an attractive place to invest, and it is time for more companies and individuals in the West to recognize it. The growth of the country’s already significant economy cannot be underestimated and the emergence of more unicorns within the year, as well as its geopolitical benefits over China, make India a great place to fork out capital.