The country of India is the most populous country in the world, with 1.21 billion inhabitants. Due to its size, the country is often viewed as a “subcontinent”, with vast landscapes that provide significant versatility. India is projected to grow to the 3rd largest economy by the year 2020.
The country hosts a number of valuable assets, including a tech savvy population, high education and skilled labor. Specifically, the manufacturing industry in India is continuing to evolve. It has begun targeting markets on a global scale, turning the country into a recognizable global competitor. Additionally, the Indian trade sector is particularly strong in its exports.
In India, the highest foreign direct investments come from IT, services, motor vehicle transport, electronics and energy. Within India, as a result of foreign investment, there has been controversy between the individual states about location for foreign companies. The domestic economy is so independent in retail and agriculture that foreign direct investments in these areas are largely blocked. However, a free trade agreement between India and the EU is envisioned.
Overall, India is experiencing significant economic growth. Even with the growing population, the country is experiencing an economic rise and has significant versatility. This occurs due to the rising domestic demand for capital goods, accompanied by a sustainable domestic economy. Although India is typically classified as an “emerging country”, the country is managing to grow in to a global economic power.
The textile industry is the second largest employment generating sector in India, employing more than 35 million people. The India textile industry shares 63% of the global textile market. The main textile produced is cotton (60%) and other import textiles are silk, jute, wool, and other man-made fibers.
Currently, India’s pharmaceutical industry falls 3rd in terms of volume and 13th in terms of value. The industry is primarily made up by small-medium, foreign companies, and is growing by approximately 10% each year.
India is the largest sourcing destination for the IT industry in the world. The industry employs roughly 10 million people and has led to the economic transformation of the country. Total spending on IT by banking and security firms in India is expected to grow 8.6 per cent year-on-year to reach the US$ 7.8 billion by 2017.
According to the most recent census survey, India occupies 17% of the world’s population and 65% of these people are below the age of 35. Of this percent it is projected that over the next 4-5 decades, India’s young population will transform the country’s demographics. India places a large emphasis on educating its youth and is a country where English is widely spoken.
Statistics show that it is expected by the year 2025, up to 70% of Indian population will be moderately skilled and working age. In the future, the country will keep attracting more service focused work. This will fuel the creation of more jobs and will result in higher wages which will further boost the domestic consumption in the country. As an investor looking at the future prospects of the Indian economy, consumption oriented sectors like pharmaceuticals, consumer durables, etc., will provide the best investment options for the long term.
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