Today, the world is changing, and our money can multiply by itself. That’s what an investment in growing markets such as foreign investment in the Indian company does. Your investment in the simplest term is your money working hard for obtaining good returns.
In recent years, India has shown rapid economic growth, making it one of the fastest-growing markets across the globe. Our country boasts of favourable demographics as well as the availability of young and kindred workforce, a viable reason for making an investment. Presently, the nation has a robust demand quotient as well as the fastest-growing economy to promote further investments.
Let’s begin with the overview of investment basics in India
Investment is a term given to the money used for the purchasing of assets to obtain returns in the form of either a capital appreciation or a comprehensive income. Money in banks hardly yields an income; however, the money invested over a commodity can have profitable outputs.
HOW INDIAN ECONOMY FITS INTO THIS STRUCTURE
The statistics show the gradual increase in all the Economic indices in India without prominent falls. In the past ten years, the overall inflation rate has been 7.3 per cent. Going by the statistics, our economy is likely to give 7.3% of good positive returns when external parties Invest in India. Moreover, the two indices, namely Nifty and Sensex, are further pacing up with more than 10% rate. For instance, According to the latest data by the Ministry of Statistics and Programme Implementation(MOSPI), Sensex over 10 years has increased with a rate of 13.86%, which guarantees an increased investment return more than the quoted price.The US Census Bureau mentions India as the storehouse of one of the most influential workforces because of the 65% of its population below 35 years of age and 50% below the 25 years. The human resource here is expected to be the highest by the year 2025. Making an investment in Indian companies would give foreign investors one of the most efficient workforces for their company.The stable political situation is also one of the most prominent features making India a hub of investments. The country has been a running democracy since its freedom and has one of the most effective systems law and order. Markets here show constructive competitiveness with minimal interference from the government, thereby making it one of the safest countries for substantial investments. The political stability also safeguards easy and branched taxation policy and easy returns.
TYPES OF INVESTMENT
After going through a clear picture of the attractive foreign investment in an Indian company and business setup in india, you must be wondering about where to put your money. Some of the investment options can be dated back to the colonial times while other non-convention ways too are devised for better financial prospects. However, the significant investments from outside are usually made in the field of Skills, Processing, Management and Technology.
Based on these four factors, the investments made can be broadly categorized into two sub-divisions:
The company or individual sets up a subsidiary enterprise in IndiaSuch enterprises need the building of operation from the start.Maximum degree of control lies with the investor or the company who invest in India.Designs and executes the operational processes and trains the human resource involved. BROWNFIELD
The organization expands its investment through mergers and acquisitions across the borders.Such foreign investment in the Indian company is often carried out by leasing or renting of the facilities provided by the Indian company.Involves cost-efficient measures and has better scope for construction activities.Some of the brownfield investment also consists of adding up the latest facility to the pre-existing company or enterprise as well.
PLANNING YOUR INVESTMENT
The favourable returns through investment can turn out to be a risky affair. Hence, for achieving maximum yield, the very first step is knowing your type of investment. Additionally, here are some of the factors one must keep in mind while trying to Invest in India:
Choose investments wisely and after conducting thorough market research.Don’t fall for inviting schemes promising easy money and successes. Find out about the ground reality first before opting to provide monetary support to a scheme.Keep running a periodical check of your mutual fund investments in the Indian Company.Always keep a documented check over the taxation procedure and the easy return policies.Don’t invest in the company or scheme you have zero ideas about. Unawareness in the market often leads to a complicated legal feud, especially if you’re a non-citizen.
Indian markets can be your chance to convert your hard-earned money into a high-yielding investment. Despite the higher stakes, your money could produce more money provided you know your way through the risky market. Your calculated investment is your gateway to shape a mere business idea into a full-fledged enterprise with a promising future.
This article is written by Amy Johnes a legal expert at Ahlawat & Associates – best law firm for Setting up business in India.