India has long been known for the diversity of its culture, for the inclusiveness of its people and for the convenience of geography. Today, the world's largest democracy has come to the forefront as a global resource for industry in manufacturing and services. Its pool of technical skills, its base of English speaking populace with an increasing disposable income and its burgeoning market have all combined to enable India emerge as a viable partner to global industry. Supported by India's natural strengths, the country offers huge investment opportunities in diverse sectors over the next five years.

This highly diversified economy has shown rapid growth and remarkable resilience since 1991, when economic reforms were initiated with the progressive opening of the economy to international trade and investment. Events such as the Asian currency crisis, the dotcom bust and rising oil prices have had no significant impact on India's growth; the economy grew at an average annual GDP growth of 7% over the past decade. Going forward, the country is targeting an annual GDP growth rate 7.5%plus as it has demonstrated in recent past.

Among developing economies, Brazil, Russia, India and China (the BRIC nations) have emerged as an economic force accounting for 41% of the world's population and 9% of its GDP. The BRIC countries are significant because of their size and fast-paced economic growth. Goldman Sachs predicts they will overtake the G7 economies in terms of output by 2030 with an increase in market capitalization of BRIC nations from the current USD 8 tn to USD 25 tn in 2020 and USD 59 tn in 2030. These nations are geographically large and resource rich, with growth fueled by large inflows of foreign investment. They vigorously pursue ambitious reform agendas and are fast becoming regional economic powers.

India is in the global arena for increased foreign investment - both through the Equity markets - termed Foreign Institutional Investment (FII) - and Foreign Direct Investment (FDI). India received FII and FDI flows to the tune of USD 43 bn during the year ended June 2011. While its size and growth potential make India attractive as a market, the most compelling reason for investors to be in India is that it provides a high Return on Investment (ROI). India is a free market democracy with a legal and regulatory framework that rewards free enterprise, entrepreneurship and risk taking.

Sound economic fundamentals:

India has a large number of listed companies and a large investor base. The present market capitalization is over USD 1.3 trillion. There is a paradigm shift in Indian Companies in terms of the following: