The major sectors encouraging Foreign Direct Investment(FDI) in India

With the global economy in strong deficit, the international investors have shown their exclusive interest for investing in the Indian market. India's economic growth and stability is seen as the most positive and a long term scope for global investors. In particular, there are number of sectors which attract and encourage the foreign direct investment (FDI) to invest their money directly in the Indian markets. These major sectors are listed and explained as follows:

Fast increasing infrastructure

We all know that the housing projects and infrastructures works are increasing at a fast rate in India. It is due to this reason that we have cities like Hyderabad, Bangalore, Guwahati, Ahmadabad, Kochi and Chandigarh turned into metropolitan in the twenty first century. Now India's metropolitan cities' list is no more confined to only the four major cities. A typical statistical survey proves that by 2011, the number of FDI projects in the Indian infrastructural arena have grown by 90% of the total development. Another statistics has forecasted a strong probability of increase in the FDI options in infrastructure because the Indian government has planned well to maximize its infrastructural expenditure up to US $ 1 trillion during the financial years from 2012 to 2017. This policy will allow investment from all the developed nations which will bring about mutual benefit.

Rapid automation

In the Indian automotive sector, there were also a good number of FDI deals in 2010 and 2011. These deals caused in eventual opening of employment opportunities. So, it is notable here that by allowing FDI deals, India has emerged as a leading vehicles' manufacturer in world automation rankings. The increasing numbers of automotive projects are thus the most suitable field for FDI in coming days.

The retail market and consumer goods

In the financial year 2011-12, the number of consumer goods' projects had increased by a decent percentage which further caused different FDI projects and job placements to many unemployed individuals. The foreign investors in Indian multi-brand retail market always take interest in analyzing the lower and upper middle class daily consumer goods like the ready to serve packed food items, snacks and confectionery, soft drinks and smoothies and the raw materials sectors etc. But the Indian government has given its full permission for the foreign investors to make direct investments in India.

Improving technology

This sector is perhaps the backbone of all types of developments in India. Starting from computer technology to the new hassle free working facilities available online via internet, technology is found everywhere these days. According to a major statistics, the technological industries have growth of twenty times of that of ten or fifteen years back. Moreover, this growth ahs also opened the new employment opportunities for innumerable jobless persons. Thus, assigning this cause as the full proof, most foreign investors have agreed to make investments in the Indian technological markets to improve their own competitiveness.

Various financial services

The centered idea behind all major activities is financial profit and hence there are varieties of Indian financial services which have allowed nearly 75% growth of the FDI projects in the financial sector. With the hard and fast rules regarding the management of capital, the FDI opportunities in the financial sectors is very low when compared to other notable sectors. But still, the demand for FDI projects in the Indian financial services is increasing day to day. In the financial year 2011-12, the financial sectors numbered an increase of 21% and in 2012-13, it found to be growing in demand.

Reliability of investment

When all the investing options in foreign sectors are analyzed with a long term basis, India stands out as the most preferred destination because of its recovering potentials shown in the recent past. In a particular analysis of renewable energy resources, India has been awarded the rank no.4 along with China, the USA and Germany as 1st, 2nd and 3rd respectively. This statistical figure proves India's trustworthiness in safe investments. Moreover, the Government of India is regularly applying new rules and laws to make the preferred sectors promoted with more stability and international standard. So, this will certainly help to prevent the possible energy price rises by applying more power saving technologies.

Medical science and health services

The way India is getting a move on to improve its various standards is quite satisfactory. Another important field in this connection is the safe and secure life from diseases. When a nation eyes on having a global status on better health and living standards, there should be special fund sources for it to provide all types of private and public health services by the medical representatives. The Government of India has made a mandate for 100% FDI allowance for health related services which comes under an automatic route. So, with this exceptional initiative, the Government has a target to provide 100% healthcare services to all the remote areas like slums and mountainous villages. For this purpose, India will have to have a well estimated budget of US $ 500 million for the financial years from 2012 to 2017. Therefore, this sector will definitely open the doors for foreign investments from around the world.