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FDI policyFDI policy –  – Indian PerspectiveIndian Perspective
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September 2007September 2007
 
MacroMacro--economic Overvieweconomic Overview
Sustained Economic growthSustained Economic growth••Growth of over 8.0% during last 3 yearsGrowth of over 8.0% during last 3 years••Fourth largest economy in the world in PPP termsFourth largest economy in the world in PPP terms
Services account for over 50% of GDPServices account for over 50% of GDP
Manufacturing sector growing annually at over 9% (Manufacturing sector growing annually at over 9% (
17.4% in17.4% inGDP)GDP)
Foreign exchange reserve of over US $ 200 billionForeign exchange reserve of over US $ 200 billion
FDI inflows grew by 72% in 2005FDI inflows grew by 72% in 2005--06: the growth in 200606: the growth in 2006--07 was 184%.07 was 184%.
FDI inflows continue to be impressive this year as well withFDI inflows continue to be impressive this year as well withUS$ 4.9 billion already recorded for the first quarter of US$ 4.9 billion already recorded for the first quarter of 20072007--0808
 
IndiaIndia--Advantages as a destination for FDIAdvantages as a destination for FDI
Young Demographic ProfileYoung Demographic Profile--54% population below 2554% population below 25yearsyears
Abundant availability of Skilled Human ResourcesAbundant availability of Skilled Human Resources
Adequate natural resources and raw materialsAdequate natural resources and raw materials
Large and growing domestic marketLarge and growing domestic market
Established rule of law and a vibrant three tieredEstablished rule of law and a vibrant three tiereddemocracydemocracy
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