| India is the second most preferred destination for foreign investors, according to a report, 'Doing Business in India' by Ernst & Young. |
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| According to the report, the aerospace and defence industry is an emerging market in India, while automotive is a profitable sector in the country for foreign investors. It is expected that by 2020, the vehicle production in the country would treble from the levels in 2009, with the auto component sector likely to reach US$ 110 billion from US$ 30 billion during the period. |
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| Further, the Indian healthcare industry has shown tremendous growth potential over the year. The Indian domestic pharmaceutical market reached US$ 12.76 billion in 2010 and is expected to grow at a CAGR of 9.5 per cent till 2015. Additionally, the medical equipment and supplies market, estimated at US$ 3.6 billion during 2010 is expected to reach US$ 6.41 billion by 2014, with CAGR of approximately 15.5 per cent. |
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| India's economic growth is expected to remain robust in 2012 and 2013, according to the United Nations' annual economic report, 'World Economic Situation and Prospects 2012'. |
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| While presenting the Union Budget for 2012-13, Mr Pranab Mukherjee, Union Finance Minister, has announced that the country's Gross Domestic Product (GDP) is estimated to grow by 6.9 per cent in 2011-12. Further, India's GDP growth in 2012-13 is expected to be 7.6 per cent +/- 0.25 per cent. |
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| Meanwhile, the Index of Industrial Production (IIP) grew by 6.8 per cent in February 2012 as compared to 6.4 per cent in February 2011. The eight core industries have a combined weight of 37.9 per cent in the IIP. |
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| Foreign Institutional Investors (FIIs) inflows reached more than INR 260.0 billion (US$ 5.1 billion) in the Indian markets in January 2012, the highest one-month net inflow in 16 months. |
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| Further, India attracted Foreign Direct Investment (FDI) equity inflows of around US$ 2.5 billion in November 2011 and a total FDI equity inflow of US$ 22.8 billion during April-November 2011-2012. For the period between April-November (2011-2012), the Services Sector attracted the highest FDI equity inflows at US$ 4.2 billion (21 per cent), while Telecommunications Sector stood at US$ 2.0 billion (8 per cent). |
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| As on March 23, 2012, India's foreign exchange reserves totaled US$ 295.2 billion, according to the Reserve Bank of India's Weekly Statistical Supplement. |
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| Policy Framework |
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| Various nodal agencies such as Departments and Ministries of the government, the Reserve Bank of India (RBI) and the Securities Exchange Board of India (SEBI) are involved in the policy making for various investment-related issues in sectors. Significantly, the government recently released the revised compendium document of foreign direct investment (Consolidated FDI Policy). Further, Non-Resident Indians (NRIs) may refer to the 'Ready Reckoner for NRIs', prepared by the Ministry of Commerce and Industry, Government of India. |
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| Types of Investment Opportunities available |
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| Several national priority level and state-specific projects are being implemented across the country. These offer huge potential for investors willing to invest in India. The government is in fact, promoting Public Private Partnerships (PPPs) in many projects opening up new vistas in sectors such as infrastructure, education, healthcare etc. |