Why India is good for investment ?

If you are planning to retire in 2024 and seek to diversify your investment portfolios and secure stable returns for your golden years. India emerges as a compelling destination & is good for investing your initial rounds or even your some portion of retirement corpus. India offering lucrative opportunities and promising growth prospects. Here’s why India is good for investment for American retirees looking to bolster their retirement corpus:

1. Robust Economic Growth

India boasts one of the world’s fastest-growing economies, attracting significant foreign direct investment (FDI) inflows.

Key Highlights

• Total FDI surpassing $953 billion from April 2000 to September 2023.
• Special economic package of over $270 billion announced under the Atmanirbhar Bharat Abhiyan, announced by Hon’ble PM Shri Narendra Modi.
• Projections by the Ministry of Finance indicate GDP growth ranging from 6% to 6.8% in the upcoming fiscal year( 2023-24).

With total FDI surpassing $953 billion and a special economic package of over $270 billion announced under the Atmanirbhar Bharat Abhiyan, India showcases its commitment to fostering a conducive investment environment. Projections by the Ministry of Finance indicate GDP growth ranging from 6% to 6.8% in the upcoming fiscal year, reflecting sustained economic momentum and ample investment opportunities.

2. Demographic Dividend and Skilled Workforce

As the home to the largest youth population globally, India presents a demographic dividend that translates into a dynamic and productive workforce.

Key Highlights.

• India home to the largest youth population globally. It is expected to rise from 121.1 cr to 152.2 cr till 2036, with an increase of 25.7%.
• Initiatives such as YuWaah with UNICEF aim to mobilize 1 Crore youth volunteers to achieve goals of Atmanirbhar Bharat.
• India has the third-largest group of scientists and technicians globally.

With projections indicating a significant rise in population coupled with a surge in the number of adolescents and youth, India’s workforce is primed to drive innovation, consumption, and economic growth. Moreover, initiatives such as YuWaah with UNICEF aim to mobilize youth volunteers, aligning with the nation’s vision of self-reliance and inclusive development.

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3. Infrastructure Development Initiatives

• Nearly 7,000 projects identified under the National Infrastructure Pipeline (NIP) costing above INR 100 Crore per project.
• Equity infusions in the National Investment and Infrastructure Fund (NIIF) catalyze investments of a $5 Tn economy by FY 2025.
• India Industrial Land Bank (IILB) mapping approximately 4,000 industrial parks across the nation, an area of 5.5 lakh hectares of land

India’s ambitious infrastructure development plans, epitomized by the National Infrastructure Pipeline (NIP), offer lucrative investment avenues. With nearly 7,000 projects identified across sectors such as energy, roads, urban development, and railways, India is committed to providing world-class infrastructure conducive to business growth and economic prosperity. Equity infusions in the National Investment and Infrastructure Fund (NIIF) further catalyze investments, enhancing the nation’s infrastructure landscape and fostering sustainable development.

4. Enhanced Global Competitiveness

• Improving rankings on global competitiveness indices, jumps 6 places to Rank 38 in World Bank’s Logistics Performance Index 2023
• Transformative reforms like Aadhar Scheme and Goods and Services Tax (GST) covering 1.35Bn Indians.
• Financial inclusion initiatives like Pradhan Mantri Jan Dhan Yojana foster investor confidence, 500 Mn bank accounts have been opened with savings amounting to INR 2,03,505 Cr. 

India’s ascent on global competitiveness indices underscores its growing stature as an attractive investment destination. Rankings on indices such as the Global Competitiveness Index and the Logistics Performance Index reflect India’s improving business environment, supported by transformative reforms like Aadhar Scheme and Goods and Services Tax (GST). The formalization of savings schemes through initiatives like Pradhan Mantri Jan Dhan Yojana further augments financial inclusion and investor confidence.

5. Innovation Potential

• Rising on the Global Innovation Index, climbs to the 40^th rank in the Global Innovation Index
• Strong focus on research and development, India ranks #1 in Central & SA Region.
• India ranks #1 in Favorable intellectual property regime attracting investments in technology-driven sectors.

India’s rise on the Global Innovation Index signifies its emergence as a hub for innovation and technological advancement. With a strong focus on research and development, India ranks first in the Central & Southern Asia region, attracting investments in cutting-edge sectors. The nation’s commitment to fostering innovation, evidenced by its favorable intellectual property regime, propels growth and positions India as a preferred destination for technology-driven investments.

6. Growing Economic Influence

• India’s strategic location and expanding economic influence.
• Center of global maritime trade shifting towards the Indian Ocean Region.India and China will be the largest manufacturing hubs by 2030.
• Initiatives like the International North-South Transport Corridor (INSTC) and the India-Middle East-Europe Economic Corridor (IMEC) enhance connectivity and trade opportunities.

India’s strategic geographic location and expanding economic influence underscore its pivotal role in global trade and commerce. As the center of global maritime trade shifts towards the Indian Ocean Region, India stands poised to become a manufacturing powerhouse alongside China by 2030. Initiatives like the International North-South Transport Corridor (INSTC) and the India-Middle East-Europe Economic Corridor (IMEC) enhance connectivity and trade opportunities, bolstering India’s economic presence across regions.

Bottom Line

In conclusion, India offers American retirees a compelling investment destination characterized by robust economic growth. Some key theme keep in mind investing in India which are their transformative infrastructure initiatives, enhanced global competitiveness, innovation potential, and growing economic influence. By capitalizing on these opportunities, retirees can diversify their investment portfolios, mitigate risks, and secure stable returns, ensuring a financially secure retirement amidst India’s dynamic and evolving economic landscape.