INDIA’S ATTRACTIVENESS TO INTERNATIONAL BUSINESS

BY:PRIYANKA INDORIA

THINK OVER IT……•THE SECOND LARGEST SMALL CAR

MARKET ??•THE SECOND LARGEST

PHARMACEUTICAL INDUSTRY ??•IS THE WORLD ECONOMIC POWER

WITH GROWTH OVER THE PAST FEW YEARS AVERAGING 8% ??

•IS THE SECOND LARGEST SOFTWARE DEVELOPER AFTER USA??

EXPORT OF INDIA

•LEATHER AND ITS PRODUCTS•PHARMACEUTICAL PRODUCTS•PLASTIC PRODUCTS•MARINE PRODUCTS•ORES AND MINERALS etc.

IMPORTS OF INDIA

•PETROLEUM PRODUCTS•IRON AND STEEL•INORGANIC CHEMICALS•FERTILIZERS etc.

SINCE 1991….

•SLOW GROWTH RATE •HIGH FISCAL DEFICITE

•ECONOMIC LIBERALISATION 1991•1998 NUCLEAR

INDIA’S LEGAL SYSTEM & MAJOR COMMERCIAL LAWS

•FOREIGN EXCHANGE MANAGEMENT ACT 1999

•COMPANIES ACT 1956•INDUSTRIES ACT 1951•NEW INDUSTRIAL POLICY 1991

CORPORATE INCOME TAX

•THE CORPORATE TAX HAS BEING REDUCED TO 46% FROM 50 %

•EXCISE DUTY ALSO SIMPLIFIED.

FOREIGN DIRECT INVESTMENT1. ROUTES FOR APPROVAL•CENTRAL BANK•FOREIGN INVESTMENT PROMOTION

BOARD2. FDI RISES IN INDIA WITH MORE THAN

2100 INVESTMENT PROPOSAL WORTH Rs156.2 BILLION

3. CURRENT FDI POLICY OFFERS THE 100% FDI STAKE IN VENTURES.

4. LICENSING REQUIREMENT HAS BEEN REDUCED.

REASONS FOR FOREIGN INSTITUTIONAL INVESTMENT(FII)

•THE NEW DEMAT TRADING SYSTEM HAS MADE INDIAN STOCK TRADING SYSTEM COMPARABLE TO OVERSEAS MARKET.

•THE PASSAGE OF STOCK MARKET FRIENDLY BUDGET HAS CREATED A POSITIVE SENTIMENTS FOR EQUITY MARKET.

Continued……..

•WITHIN ASIA, THE VALUATION OF THE INDIAN STOCK MARKET APPEARED TO BE THE CHEAPEST AND HENCE THE MOST ATTRACTIVE.

THANK YOU