Foreign Direct Investment to India to double

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Foreign direct investment in India is set to double. Inflows are not as dramatic as neighboring China, but India is a BRIC country (Brazil, Russia, India, China) and any serious investor can’t ignore this giant.

Foreign direct investment is set to reach 11billion from the previous year’s 5.5 billion. By comparison China had over 72billion in foreign direct investment.
Why the doubling? Well for one thing India’s prime minister has loosened foreign ownership rules. In telecom, foreign companies can now own upto 75% of a domestic company. Other industries are capped at 50%. Go to one of the sprawling cities and its hard to grasp the tremendous growth.

The year-end review from the commerce ministry showed that India’s industrial production increased more than 10 per cent between April and October, with manufacturing growing 11.2 per cent compared with the same period the previous year. Manufacturing growth targets of 12 per cent are likely to be reached this fiscal year.

Real Estate is growing in double digits. The stock market is up over 40%. India 2007 looks to be a good market to be in for the forseeable future. Compare this to U.S. growth rates of under 3% and its easy to see why investors are flocking to this Asian jewel.