The emerging economies such as India, serve as lucrative market for the investors. Investors from different sectors continue to show interest in the emerging countries.
In India, sectors such as healthcare, real estates, food and agriculture serve as one of the promising investment sectors for companies. With the increasing economic growth of the country, there are foreign investors showing their interests in the emerging sectors.
According to a few surveys, Delhi, Haryana, Gujarat, and Tamil Nadu are attractive destinations for investments in India. A report published by the National Council for Applied and Economic Research (NCAER) described about the potential of the Indian states and described the factors impeding the market growth.
The competitiveness of Indian states from the investor perspective is defined under six key categories, namely land, labour, infrastructure, economic growth, political stability, and governance. Regulatory and operational hurdles continue to impact the investments in the country. However, the economics and governance has helped in defining the key areas for investors in the country.
Real estate is the one of the most flourishing business in India, where there are domestic as well as international investors venturing in the market. According to research studies, Delhi has been ranked as the first for investment destinations in the country, followed by Tamil Nadu and Gujarat.
The availability of cheap labour, readily available land and political stability are some of the factors which make Delhi as one of the most attractive destinations for real estate investors and other businesses. Tamil Nadu has labour availability and good governance, which brings down investors to the region for project development. States such as Uttarakhand and Telangana rank well in the business on the grounds of sound infrastructure.
However, there are reports by the economic surveys urging the investment companies to look beyond the states of Gujarat and Maharashtra. Madhya Pradesh and Kerala also top the survey charts under the land category.
The investment potential index has helped in bringing business to various Indian states. Therefore, 2018 surveys can help the investors in building better relationships with the investors. The economic environment in Delhi, Telangana and Maharashtra can help in bringing promising business and increased investment from the prospective investors.
World Bank report on business investments has helped in accessing the current scenario in India. These surveys and business reports help in building a better understanding of the market. States such as Andhra Pradesh, Telangana, Haryana and Jharkhand have shown remarkable growth prospects in the different sectors for business investments.
With the regulatory assessments in the country, it has become easier for foreign investors to venture into the country and understand the business grounds.
According to the National Council for Applied and Economic Research (NCAER)’s 2018 State Investment Potential Index (N-SIPI), Delhi, Tamil Nadu, Gujarat, Haryana, and Maharashtra are top investment destination in the country. With the increasing investments, there is also an increasing competition in the states to attract foreign investors.
Factors such as favourable economic environment, investment in building better infrastructure, offering tax incentives are areas where emerging states are working on to improve their investors grid. Apart from real estate, tourism, medical tourism and healthcare are key business investor areas to be focussed in India.
A major chunk of the economic growth is built on the investments in medical tourism and healthcare sector. With the availability of cheaper medical procedure, the country generates heavy revenue from medical tourism.
However, it can serve as one of the promising investment destinations in India, which in turn can also help in strengthening the healthcare sector. Tourism has been one of the key revenue generators in the country.
However, it lacks the heavy or even marginal business investment by foreign investors. There are remote destinations such as Sikkim, Meghalaya, South Kerala, which can act as lucrative business investment ground for generating heavy revenue in the country.