Investment opportunities are growing enormously in India under a new Modigovernment that came to power in May 2014. The government has announced plans to improve the country’s infrastructure and open up the defence and insurance sectors to more foreign investment

Foreign direct investment (FDI) forms the centrepiece of the government’s agenda for market-oriented economic reforms as India does not have the funds domestically to meet the desired pace of infrastructure development and deliver economic growth.

India requires around $1 trillion in the next five years to overhaul its infrastructure sector and in 2013-14, FDI inflows in India amounted to $24.3 billion. Accordingly, the government is offering an attractive package to foreign investors that bring funds and expertise in the infrastructure arena.

A core model in India is the Build-Own-Operate-Transfer model, which has been successfully applied to past infrastructure projects such as power generation. These schemes become attractive with the government effectively underwriting investment returns. In addition, there exists significant untapped potential for the use of public-private partnerships (PPP) in India in the e-governance, health and education sectors. Further information on PPP’s in India can be found on the government website, www.pppindia.com.

The investment environment is becoming clearer: India’s credit rating is investment grade and anticipated to be BBB by 2017; a tax treaty exists between Australia and India; and the Rupee is expected to be fully convertible within the next five years.

Our Focus

If you are seeking to invest in India such as establishing a manufacturing operation, forming a joint venture or acquiring an existing business, Indelligence can assist in several ways, including:

• Reviewing your investment strategy to clarify aims and requirements and providing feedback from a practical perspective on the Indian market
• Undertaking due diligence on the market opportunity, including conducting market analysis, verifying assumptions and determining regulatory processes
• Providing a background review of potential partners
• Sourcing appropriate opportunities, such as acquisition targets

Our network of associates in India provides a high degree of access to information across several industries and regions.

While the Indian government invites foreign investment for infrastructure, the Indian business community has money and does invest significantly offshore.

Contact Us for more information

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