News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 16 years ago
Rediff.com  » Business » India good investment option: report

India good investment option: report

By Dharam Shourie in New York
Last updated on: June 05, 2007 14:03 IST
Get Rediff News in your Inbox:

Having strong fundamentals, India provides lucrative investment opportunities to foreign companies, but the country's corporates can be tough competitors as they are growing at a fast pace, a report has said.

A Societe Generale's report -- The India Factor, released by Minister of State for Industries Ashwani Kumar on Monday, said India has a strong growth rate, high savings rate and a diversified economy and provides opportunities for MNCs in construction, telecom, banking and consumer goods sectors.

However, it warned the MNCs of tough competition they could face in the country as Indian companies are likely to expand their market share both at home and abroad.

"We are already seeing this with IT services and pharmaceuticals and can expect further competition from India's new global players in automobiles and components, metals and mining and oil and gas, among other sectors," the investment banker said in the report.

"India's expansion, therefore, combines both risks and opportunities for the Western companies," it added.

India has opened up almost all sectors to foreign participation and a combination of high growth rates, rich talent and growing domestic market is turning it into a 'land of opportunity for foreign investors and companies.'

The European companies comprise 50 per cent of all multinationals operating in India, it said, predicting that they will 'significantly' step up their effort in the country.

"A significant increase in sourcing, manufacturing, and research and development is expected. The fast-moving and competitive Indian market means that they (companies) must be prepared to invest and capture growth or risk losing out as many did in China," it said.(PTI)

Indian Minister of State for Industry Ashwani Kumar speaks on 'The India factor and a comparative analysis of the opportunities and risks in China and India' at Waldorf Astoria in New York on Monday.

Photograph: Mohammed Jaffer-SnapsIndia

Get Rediff News in your Inbox:
Dharam Shourie in New York
 

Moneywiz Live!