Foreign Direct investment relaxation in the Indian market is said to open up various investment opportunities for the foreign investors in India. It is expected that India may receive $4-$5 billion of investment in the coming two years.
Government’s verdict has given a go ahead to FDI in retail as well as in other industries, which gives a green signal to the foreign depositors to make an entry to Indian market. This way in was much awaited by the investors and even Indian consultancy firms like KPMG, Tecnova and Ernst and Young unanimously agree that this move of government will definitely encourage the industrial growth of India.
The decision of FDI relaxation would bring about $2-$3 billion in the retail sector alone, as expected by Indian retail consultants. However, there will be more investment in other sectors as well. The added information on this front is given by Tecnova India executive that not only the western countries, but far eastern countries would also come forward to make huge investments in Indian market and this share would largely arrive from mid to large sized organizations.
KPMG also states that Indian investment market will boost after FDI as both single and multi brand segments will be benefited with this move and that also for a longer period of time. It is expected that advantages will be far reaching and will stay in the market for many years to come.
However, it is also undeniable that many foreign companies are already thriving in the Indian market so it is difficult to identify the benefit earned by the single brand retail as compared to multi-brand retail.
Not only the retail sector, but Indian Aviation industry and even the broadcasting industry will get to see some heavy investments and digitization processes in ear future.
Other benefits apart from the investment include the improvisation of the Indian industrial infrastructure and the augmentation of employment in the country. The more investment will lure more companies to initiate their business in India that will turn out to be the employment machine for the country. It is also expected that betterment of supply chain will assist Indian farmers in a great way.
In spite of speculations about the huge investments in India after FDI respite, some consultants also point out the possibility that many foreign investors may not come insistently in the country and we have to wait and watch for the trend.