India Investment Destination Jan.

3-5, 2007
Dr. Ajay Kr. Singh Secretary General Eighth International Conference www.internationalconference.org www.drajayksingh.com

Inaugural Session of 8 IC


Wish you all a very happy, prosperous, peaceful new year. year. I welcome each one of you who has contributed for the success of Eighth International Conference by being present here. here. Distinguished Personalities on the dais and off the dais, a very good morning to all of you. you.

Introduction
India is one of the fastest growing economies of the world and the entire world is watching our growth and development process. process. Despite the fact that India is growing at a very fast pace, China is still growing faster than India. Let us see some India. Statistics from the Industry Chamber ASSOCHAM. ASSOCHAM.
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62,000 investment proposals await nod

There is a bureaucratic spanner in Indias efforts to emerge the most preferred investment destination in the eastern world. world. According to industry body ASSOCHAM, nearly 62,000 proposals involving a 62, cumulative investment flow of around INR 1,550,000 crore are pending 550, approvals from various states and central government for the past nearly 18 years. years.
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62,000 investment proposals await nod

According to ASSOCHAM data on investment proposals, if these 62,000 62, proposals are fructified, they can generate over 18.5 18. million employment opportunities. opportunities. it is observed that even at 40% 40% fructification of these investment proposals, investment of INR 644,000 crore 644, can come through, generating employment for about 7.4 million people. people.
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62,000 investment proposals await nod

The Proposals have an average investment worth of INR 25 crore each and have the potential to generate an employment for at least 300 people per proposal. While a proposal. chunk of these investment proposals have been submitted by the domestic industry, overseas applications account for nearly 17 percent of the pending proposals. proposals.
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62,000 investment proposals await nod

The chamber called for steps to improve the investment climate in India as it takes 89 days to start a business, 425 days to enforce a contract and 7 days to clear customs. customs. Almost 15% management time is wasted to 15% deal with officials, while losses to electricity outages amount to about 12% of 12% the sales. sales.
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62,000 investment proposals await nod

Infrastructure needs substantial improvement and the government should recognize the role of the industry to achieve and put India on a faster growth trajectory, said ASSOCHAM President Shri Anil Agarwal. Agarwal. Despite these hurdles, India is growing at more than 8 percent, that means everything is not that bad. Let bad. us look at some more statistics for India as an Investment destination. destination.
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India most attractive for Foreign Investors

Private external inflows to India has been the highest in the last three to four years, compared to other emerging countries. The countries. booming capital markets have greatly enhanced foreign investors interest in FCCBs, ADRs, and GDRs issued by Indian Companies. Companies. India with inflows of $19.3 19. billion in 2005 was third after China and South Korea. Korea.
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India most attractive for Foreign Investors

The average inflows for India through bonds, equities and loans during 2003-05 2003has risen by 158.4 percent as against 40.3 158. 40. percent for other emerging markets. This is markets. largely driven by Indian companies raising funds in global markets. This flow has markets. increased after Indian banks have permitted to raise funds through issuance of innovative debt capital in foreign currency. currency.
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Dollar Flows
Private external flows to Asian countries through new bonds, equities and loans. (in $ million) (TOI Nov. 15, 2006)

2001 Asia China

2002

2003

2004

2005

Growth %

67483 67201 87968 123719 150388 14.3 5567 8892 13590 24368 35797 34463 19316 15307 11701 32.6 21.2 88.1 -1.9 34.4
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S Korea 17021 14694 17237 24424 India 2382 1381 18149 13918 13555 15309

Hong 18307 12602 4094 Kong Taiwan 3794 10959 9056

Dollar Flows to Asia

160000 140000 120000 100000 2001 2002 80000 2003 60000 2004 40000 2005 20000 0 Asia
Average annual source:EIU (in $ m)

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Dollar Flows
40000 35000 30000 25000 20000 15000 10000 5000 0 Chin Hong Kong Indi S Kore T iw n 2001 2002 2003 2004 2005

Average annual source:EIU

(in $ m)

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Dollar Flows Growth Rate

90 80 70 60 50 40 30 20 10 0 -10 Chin Hong Kong Indi S Kore T iw n

Growth %

Average annual source:EIU

(in $ m)

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FDI inflows to India double in Apr-Sept 2006 to $ 4.4 billion

The India story keeps getting bigger. bigger. Foreign Direct Investment (FDI) inflows during the first half of the financial year have doubled to $4.38 billion in 2006 as against $2.2 billion during April-September April2005 as per Government of India report released on November 20, 2006. 20, 2006.

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FDI Inflow
6 5 4 3 2 1 0 2003-04 2004-05 2005-06
In $ b

5.52

3.21 2.19
Indi

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April-September
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2005-06 2006-07
In $ b

4.38

2.20

Indi

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FDI Inflows in September 2006

During September 2006, FDI inflows rose 225 2006, percent to $916 million, compared to $282 million in September 2005. The buoyancy in FDI 2005. flows during the first six months is likely to continue in the second half and it is likely to close the year with $9-10 billion, as per the statement of Commerce and Industry Minister Mr. Kamal Nath. Mr. Nath. Add to that, another $3 billion in reinvested earnings and the figure could go upto $12-13 12billion. billion.
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September
1000 900 800 700 600 500 400 300 200 100 0

916

Indi

282

2005-06

2006-07
In $ m

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Country wise FDI Inflow to India

Singapore has moved up from the seventh position to the second position in terms of major sources of FDI to India and has in the process taken over US and UK. Mauritius with $2.54 billion FDI inflows during April September 2006 remained at the top of the list followed by Singapore $481.7 million.

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Top Sources of FDI Inflow to India in $ million

Country Mauritius Singapore US 2005 891 118 323 2006 2545 481 Growth % 185 305 26
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406

Top Sources of FDI Inflow to India in $ million

3000 2500 2000 1500 1000 500 0 Mauritius Singapore US 2005 2006 Growth %

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Sector wise FDI Inflow to India

Since 1991, when foreign investment norms were 1991, simplified, it is electrical equipment which includes computer hardware and services that has been the top drawer followed by services, telecom, transport and energy. Although, in Aprilenergy. AprilSeptember 2006 Services ($1.51 billion) attracted more FDI than electrical equipment ($777.9 777. million), while telecom remained at third position with $405.2 million. Transport ($258.7 million) 405. million. 258. and energy ($138.3 million) occupied the fourth 138. and fifth places. places.
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Preferred Destinations in India

Since 1991, north India has accounted for 1991, nearly a quarter of the inflows, followed by Maharastra, Dadar & Nagar Haveli and Daman & Diu, which cornered around 22 percent of the FDI flows. While the flows. southern part of India saw a steep growth in inflows, Delhi and Mumbai occupied the top two slots. slots.
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India v/s India

Hence we can say that there are two Indias in this country looking to progress made by some regions and states despite all odds still not removed in terms delays and red tape. One India is straining at the leash, eager to spring forth and live up to all the adjectives that the world has been showering recently upon India. The other India is the leash.
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India v/s India

One India says, give me a chance and I will prove myself. The other India says, prove yourself first and may be then you will have a chance. One India lives in the optimism of our hearts. The other India lurks in the skepticism of our minds.
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India v/s India

One India wants. The other India hopes. wants. hopes. One India leads. The other India follows. leads. follows. But conversions are on the rise. With each rise. passing day more and more people from other India have been coming over to this side. side. And quietly, while the world is not looking, a pulsating, dynamic, new India is emerging. emerging.
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India v/s India

An India whose faith in success is far greater than its fear of failure. failure. An India that no longer boycotts foreign made goods but buy out the companies that make them instead. instead. History, they say, is a bad motorist. It rarely ever motorist. signals it intentions when it is taking a turn. turn. This is that rarely-ever moment. History is turning rarelymoment. a page. page.
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India v/s India

For more than half a century, India has sprung, stumbled, run, fallen, rolled over, got up, dusted herself and cantered, sometimes lurched on. But today, the ride on. has brought us to the edge of times great precipice. precipice.

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India v/s India

And one India a tiny little voice at the back of the head is looking down at the bottom of the ravine and hesitating. hesitating. The other India is looking up at the sky and saying, its time to fly. fly.

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8 IC
The Eight International Conference on India: India: Investment Destination has been organized to continue this flight of India and to do further research in the area so that this flight goes without any hindrance. The hindrance. theme of the Eight International Seminar is Real Estate Development: Urban v/s Development: Rural. Rural. which is also one of the fastest growing sector. sector.
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Technical Sessions
1. Economic Opportunities and Challenges: 1.Economic Global Perspective 2. Single Window Clearance: Dream v/s Reality 3. FDI: India vis--vis China vis4. Infrastructure Development in India 5. Research Paper Presentations on Contemporary Issues.
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8 IC
I sincerely wish and hope that the deliberations in the conference and seminar would go a long way in providing research input to the policy makers which will add fuel to the continuing flight of the growth and development of the Indian Economy and would make it sustainable. sustainable.

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Greetings
Once again I wish you all a very happy, prosperous, and peaceful new year, and also welcome you all to the 8th International Conference at New Delhi.

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Thank You by Dr. Ajay Kr. Singh Secretary General Eighth International Conference www.internationalconference.org www.drajayksingh.com
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