A recent study by Institute of International Finance (IIF), a Washington-based global association of financial institutions, predicts that the hunger of Indian players to operate in foreign lands will lead to triple fold rise in foreign direct investment out of the nation in 2007.
The report by IIF expected that the good performance of Indian economy and improving policy environment would accelerate the direct investment in 2007 to $8 Billion from $6.5 Billion in 2006.
The figures might appear a small amount as against the frequent investment announcements of hundreds of millions of dollars abroad by Indian majors like Suzlon, Ranbaxy, Subex Systems, Dr Reddy’s Labs, and Tata Tea, but industry experts say this is due to the fact that big deals usually have foreign financing components or debts.
IIF predicts the FDI would mount to a massive $211 Billion in 2007, the highest value recorded from $185 Billion in 2006.
The study by IIF cites booming Indian economy and an appetite for deals to capitalize on the market as the factors fueling growth in investments in India. Meanwhile, Indian players continue to hunt for business grounds in foreign lands in terms of new consumer markets and production.
According to the RNCOS report “India Retail Sector Analysis (2006-2007)”India enjoys the highest retail density in the world. Current data shows that India has one retail outlet for every hundred people. Opening doors to foreign players by respective governments has helped in the global expansion of the retailers. To be successful in the Indian retail market, retailers have to overcome the cultural and regional differences as these factors dissuade retailers in India to follow a single retail format.
The report further highlights the important features of the Indian organized retailers. As per the report, organized retail sector will account for 10% share of the total retailing by the year 2010 at a growth rate of 30% annually. It gives a detailed account on break up of products sold in organized retail, share of food industry in organized retailing and its growth rate, industry segmentation by retail format, product penetration, and advertising and marketing scenario in retail industry.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.