India is one of the most popular places in the world for FDI. We are a great place to start and run a business because we have a big consumer market, a growing population, and a business climate that is getting better. We get most of its FDI from Singapore, the US, the UK, the UAE, Japan, the Netherlands, and other places.
At the same time, new FDI sources are popping up, along with the old favourites. New FDI is coming into the country because of the country’s promise. Countries like Spain, Canada, and France have grown their presence in the Indian market in recent years. We are also getting better off because there is a growing movement away from China. After COVID, many countries are using a “China+1” plan to make themselves less dependent on China. When things are like this, India is a reasonable choice.
Spain: A country in southern Europe, is slowly moving up the curve to become one of India’s new sources of FDI. In FY21, FDI from Spain to India jumped to USD 425 million, which happens to be a huge increase from FY14, as then FDI from Spain to India was only USD 181 million per year. We are one of the developing economies that is growing the fastest in the world, and it is putting a lot of effort into infrastructure, sustainable development, cleaner technologies, and so on. Going ahead, India’s economic progress will be tied to the development of cities, the improvement of infrastructure, and policy changes that raise the living standards of households. The South Asian country has done a lot of big projects, like the Smart City Mission in more than 100 cities, putting in place local transit systems in both metros and tier-2 cities and increasing the amount of clean energy.
Canada: Between 2000 and 2012, FDI from Canada into India was worth USD 3.2 billion. India and Canada have strong ties because there are a lot of Indians living in Canada. Estimates that are not official say that close to 1.2 million PIOs live in Canada.
Even though Canadian FDI in India has grown steadily and has shown clear signs of speeding up since 2016, this is just the tip of the iceberg when it comes to Canada’s role in India. In the future, Canada’s investments can grow by many times what they are now. This will be helped by India’s growing middle class, cheap workers, and land prices. India will also help Canada reach its stated geopolitical goal of gaining more power in the Indo-Pacific area.
France: The EU country is working hard to grow its share of the Indian market. Since 2000, France has invested more than US $10.5 billion in India through FDI. After 2018, close to USD 4 billion had been put into this. There are about 1,000 French businesses in India that hire 300,000 people. In the meantime, 150 Indian businesses have a physical foothold in France. France invests in many different areas in India, such as information technology and telecommunications, automobiles, military, aviation, etc.
Role of The India Watch
Through deep India market entry advisory, The India Watch can help foreign investors get into the country, find their way around, and set up businesses there. The steps listed below are part of the India Market Entry Advisory-
1. Scan the market for opportunities and do some basic research.
2. Studies on the viability of projects, thorough reports on projects, etc.
3. Searching and identifying vendors.
4. Getting a list of distributors and holding B2B talks.
5. Consulting on growth and making a plan for the future.
6. Help with marketing and PR.
7. Searching for an office, commercial land, and a warehouse.
8. Help with starting a business.
If you want to know more, email The India Watch team at info@theindiawatch.com.
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