3. India's economic situation and investment environment
In recent years, India ’s economy has developed rapidly, and it is also working to improve its investment environment and attract foreign capital.
(1) Resource endowment
India is rich in mineral resources, with nearly 100 kinds of mineral deposits. The output of mica is the first in the world, and the output of coal and barite is the third in the world. As of the end of 2010, the main resource reserves (proven reserves) were: mica 394,000 tons (69,000 tons), coal 267.2 billion tons (105.8 billion tons), barite 74.2 million tons (34.31 million tons), iron ore Stone 14.6 billion tons (7 billion tons), bauxite 3.29 billion tons (900 million tons), copper 1.39 billion tons (370 million tons), manganese ore 378 million tons (138 million tons), chromite 210 million tons (6612 Tons), zinc 9.7 million tons, lead 2.381 million tons, limestone 75.679 billion tons, phosphate 300 million tons (52.72 million tons), gold 4.98 million tons (850,000 tons), silver mine 224 million tons (116 million tons) , 1.2 billion tons of oil, 1.437 trillion cubic meters of natural gas. In addition, there are mineral deposits of gypsum, diamond and titanium, thorium, uranium and so on.
According to the latest statistics from the Ministry of Mines of India, the output of Indian barite and talc / pyrophyllite were 1.739 million tons and 1.184 million tons respectively in 2012, accounting for 17.9% and 15.2% of the global output, both ranking second in global output; coal / The output of lignite, chromite, and zinc ore were 604 million tons, 2.95 million tons, and 704,000 tons, accounting for 7.8%, 11.1%, and 5.6% of global output, ranking third in global output. Among major minerals, steel output was 78.3 million tons, accounting for 5.1% of global output, ranking fourth; aluminum output was 1.675 million tons, accounting for 3.6% of global output, ranking eighth; iron ore output was 136 million Tons, accounting for 4.1% of global production, ranking fifth; copper output is 493,000 tons, accounting for 2.4% of global production, ranking tenth.
India has abundant land resources. The forest area of India is 678,000 square kilometers, with a coverage rate of 20.64%. According to the statistics of the United Nations Food and Agriculture Organization in 2005, India has 1.596 million square kilometers of arable land, which is about 160 million hectares. The statistics of the Ministry of Agriculture of India is about 180 million hectares, which is the highest in Asia. My country twice. India has better natural conditions than China, with a low proportion of high mountains and deserts, and less than one-third of the country ’s land area, but the cultivated land area exceeds China, and the water and heat conditions of cultivated land are also better than China.
The entire territory of India can be roughly divided into four parts: the high Himalayas in the north, accounting for about 11% of the country's land area; the central Ganges plain area, accounting for about 43% of the country's land area; the southern Deccan plateau area and the western Tar desert area Platforms, gentle hills and hills account for about 36% of the country's land area. Among the national land area, cultivated land area accounts for about 47%, forest area accounts for about 22%, and grassland accounts for about 4%. India has abundant water resources, with a total rainfall of 3.93 trillion cubic meters throughout the year. In 36% of the country, the average annual rainfall is above 1500 mm, 33.5% of the area is 750-1150 mm, and 33.5% of the area is 750 mm. There are many rivers in India. The main river is the Ganges, with a total length of 2700 kilometers, more than 10 tributaries, and a drainage area of 1.06 million square kilometers; followed by the Brahmaputra River, Godavari River, and Narmada River, Krishna River, etc. Abundant rain and numerous rivers provide favorable conditions for agricultural production and agricultural irrigation, but the construction of farmland water conservancy is not good. The irrigation area in the country accounts for only 32.8% of the cultivated land area, and most of the cultivated land is fed by the sky.
India has a tropical monsoon climate with four seasons throughout the year. The cool season is from January to February, the summer is from March to May, the rainy season is from southwest monsoon from June to September, and the northeast monsoon is from October to December. The minimum temperature in the north is 15 ℃, and the temperature in the south is as high as 27 ℃. The frost-free period is almost the whole year. The crops can be grown all year round, and the heat resources are quite rich.
India has abundant labor resources. According to statistics released by the Ministry of Economic and Social Affairs of India, as of the end of June 2014, India had a population of 1.267 billion, ranking second in the world, with an average annual population growth rate of 1.39% in the past 10 years. The average birth rate of women of gestational age is 2.53. Indian nationals are very young, with a per capita age of only 26.6 years old. The population under 25 years old accounts for 50%, and the population 25-35 years old accounts for 15%. Among them, the rural population accounts for about 68%, and the literacy rate of people over 15 years old is about 74%. If well utilized, these population resources are India's greatest wealth.
(2) Macroeconomic conditions
1. Macroeconomic indicators
From the independence of India to the 1980s, the average economic growth rate was only 3.5%, and it rose to 5% -6% in the 1980s. In July 1991, India began to implement comprehensive economic reforms and relax control over the industrial, foreign trade, and financial sectors. During the "Eighth Five Plan" (1992-1997), the average annual economic growth was 6.7%. During the "Ninth Five-Year Plan" (1997-2002), the average annual economic growth rate decreased to 5.5%. In 1999, the second phase of economic reforms began, speeding up the privatization of state-owned enterprises, improving the investment environment, streamlining government agencies, and reducing fiscal deficits.
In the early 21st century, it entered a stage of rapid growth. During the "Tenth Five-Year Plan" (2002-2007) and "11th Five-Year Plan" (2007-2012), the average annual growth rate of gross domestic product (GDP) reached 7.6%. On January 30, 2015, the Central Bureau of Statistics of India adjusted the statistical method of GDP and adjusted the statistical base period from the 2004/05 fiscal year to the 2011/12 fiscal year. According to the new statistical method, India ’s fiscal year 2013/14 and 2014/15 The annual GDP growth rate is 6.9% and 7.4%, respectively.
[Financial Revenue and Expenditure]
India implements a central and local fiscal separation, federal and state budget system. Every year from April 1 to March 31 of the following year is a fiscal year. India has implemented deficit budgets for many years to stimulate economic development. Government budgets are often in short supply. The fiscal gap is mainly covered by the issue of public debt. In addition to inflationary pressures, large amounts of interest are paid every year.
[Foreign Exchange Reserves]
At the end of January 2016, India ’s foreign exchange reserves were US $ 349.6 billion, an increase of 15% year-on-year and a decrease of 0.7% from the beginning of the fiscal year. Foreign exchange reserves can support 12 months of imports. In February 2016, India's broad currency M3 was 115.8 trillion rupees, an increase of 11.3% year-on-year, and the increase narrowed by 0.2 percentage points from the same period last year.
Inflation
According to the latest data released by the Indian Ministry of Statistics, the wholesale price index fell by 1.19% year-on-year in the 2015-2016 fiscal year (April 2015-February 2016). In February, the Indian Consumer Price Index (CPI) was 125.9, an increase of 5.18% year-on-year, and the growth rate decreased by 0.51 percentage points from the previous month, the lowest in four months. Data show that food prices rose by 5.3% year-on-year, and the growth rate decreased by 1.55 percentage points from the previous month, which was the main reason for the decline in retail prices. Among them, the price of beans rose by 38.3% year-on-year, and the prices of fish, meat, milk, and fruit rose by 7.3%, 3.7%, and -0.7% respectively, and the growth rate slowed down. The analysis said that the government's adherence to the fiscal consolidation roadmap and the reduction of the new year's fiscal deficit target to 3.5% have been appreciated by Central Bank Governor Rajan. The central bank set the inflation target at the end of the next fiscal year as 5%. Although the current inflation rate is still higher than the target level, the inflation situation has eased. The central bank will cut interest rates at or before the monetary policy meeting on April 5 as Boost economic growth.
Unemployment Rate
The latest report released by the Indian Ministry of Labor and Employment in January 2015 shows that in the 2013/14 fiscal year, India ’s unemployment rate was 4.9%. 49.5% of the labor force in India is freelance, 30.9% of the labor force is temporary workers, only 16.5% are working class, and the remaining 3% are contract workers.
External Debt Balance
As of the end of December 2014, India ’s external debt balance was US $ 461.9 billion. According to the maturity of debt, short-term external debt was US $ 85.6 billion, accounting for 19% of external debt balance and 25% of foreign exchange reserve balance; medium- and long-term external debt was US $ 376.4 billion, including multi-bilateral loans, IMF loans, commercial loans, export credit Indian and Indian deposits account for 81% of the external debt balance.
According to the classification of debtors, government (sovereign) debt is US $ 90.1 billion and non-government debt is US $ 371.8 billion, accounting for 19.5% and 80.5% of the external debt balance, respectively. According to the debt currency, the US dollar is the main foreign debt, accounting for 58.7% of the external debt balance, and the external debt of the rupee, SDR, Japanese yen, and euro accounts for 26.4%, 6.3%, 4.1%, and 2.9% of the external debt. In 2013, India ’s external debt balance accounted for approximately 23.2% of GDP, with a debt service rate of 8.6%.
2. Key / characteristic industries
Agriculture India has 1/10 of the world's arable land, with an area of about 180 million hectares. The rural population of India accounts for approximately 72% of the total population. The main food crops are rice and wheat, and the main cash crops are oil, cotton, jute, sugar cane, coffee, tea and rubber. The national grain output in the 2015-2016 agricultural year (June-July) was 252 million tons, roughly the same as the previous year's output, and the national output of major cash crops such as cotton, sugarcane and oilseeds was lower than the previous year's level. India's agriculture as a whole is relatively backward, far from reaching its due level. The total area of arable land is about one third more than that of China, but the agricultural output is not high, and the total grain output is less than half of China, only about 40%, which leads to the general malnutrition of the Indian population, even lower than that in the sub-Saharan Of Africa. In 2017, the International Food Policy Research Institute, headquartered in Washington, DC, recently released a "Global Hunger Index" on the state of hunger in countries around the world. The report shows that India ranks 100th among the 119 developing countries in the world. This ranking is even lower than the world's poorest countries and regions such as Bangladesh and Nepal.
Industry India's industrial system is relatively complete. Mainly include textile, food, chemical, pharmaceutical, steel, cement, mining, petroleum and machinery. In recent years, emerging industries such as automobile, electronic product manufacturing, and aerospace have developed rapidly, but insufficient energy supply has restricted the development of the industry. India's auto parts, medicine, steel, chemical and other industries have high levels and strong competitiveness. Industrial output value increased by 5.9% in the 2014/15 fiscal year. Among them, the mining and quarrying industry increased by 2.3%, the manufacturing industry increased by 6.8%, the construction industry increased by 4.5%, and the power, gas, water industry and other facilities and services increased by 9.6%.
[Service Industry]
The service industry accounts for a relatively high proportion of the national economy. Chain operations and modern logistics and distribution methods are not yet common. The finance and insurance industries are developed and have strict management. In 2014/15, the output value of the service industry increased by 10.6%, accounting for 52.6% of GDP. Among them, the growth rate of trade, hotel, transportation and broadcasting-related communication service industry was 8.4%, the growth rate of finance, fixed assets and professional service industry was 13.7%, and the growth rate of public administration, defense and other service industries was 9%.
In recent years, the Indian software industry has developed rapidly, and the export and service outsourcing industries have developed rapidly. According to the annual report of the Ministry of Telecommunications of India, in the 2011/12 fiscal year, India achieved software exports of 3.33 trillion rupees (approximately US $ 68.8 billion); in the 2012/13 fiscal year, it achieved software exports of 411 million rupees (approximately US $ 75.8 billion), year-on-year About 23.5%. With the development of the software service industry, in recent years, a number of well-known software service industry base cities such as Bangalore, Chennai, Hyderabad, Mumbai, Pune and Delhi have formed. Tata Consultancy Services, Wipro Technologies and Infosys Technologies have become world-renowned software service outsourcing companies.
[Pharmaceutical industry]
India's pharmaceutical industry is also relatively influential internationally, ranking second in the world, and biomedicine is the leader of the Indian pharmaceutical industry. In the 2010/11 fiscal year, the pharmaceutical output value reached 1.05 trillion rupees, and the pharmaceutical export value reached 475.5 billion rupees, accounting for 4.2% of the total exports that year. There are more than 3 million employees and about 270 large-scale R & D biomedical companies. In addition, there are about 5,600 small-scale generic drug companies with pharmaceutical production licenses.
Other important industries in India include the automotive industry and the banking industry.
India is one of the major automotive markets in the world, and its market size in fiscal 2016 is expected to be US $ 145 billion. Thanks to India ’s logistics and geographic advantages, all global auto giants have invested in India to seek potential market opportunities. India ’s ports are closely linked, close to South Asia and Africa. This excellent geographic location helps India grow into a regional manufacturing and export center. With major global OEMs already entering the market, the Indian auto market is expected to grow substantially, accounting for 5% of global auto sales. According to industry estimates, India is expected to become the world's fourth-largest automobile producer after China, the United States and Japan in 2020. Overall, due to the pro-business position of the Indian government, automakers and suppliers will maintain confidence in the Indian market for a long time and continue to invest in India.
After years of development, the Indian financial market has gained a certain depth and formed a situation dominated by banks. The banking industry plays a vital role in the overall financial stability and is therefore subject to strict administrative supervision and management. Banking reforms encourage private companies and foreign banks to enter the market. The efficiency and productivity of the banking industry continue to improve, and a market-oriented industry is gradually formed. Under the guidance of this ideology, two private banks were granted banking licenses. This is the first time a banking license has been issued to a private bank since the implementation of commercial and retail banking operations in India. Over the years, foreign banks have established banking operations in India through the establishment of branches.
After years of development, India ’s economic development has had a good foundation, the macroeconomic fundamentals are good, the industrial structure is complete, agriculture has suffered from severe food shortages to basic self-sufficiency, and industry has formed a relatively complete system with strong self-sufficiency. After the 1990s, the service industry developed rapidly, and its share of GDP rose year by year. High technology has developed rapidly, and it has become an important exporter of global software and financial services.
Although the uncertainties of global economic growth have increased, the Indian economy is expected to maintain stable and rapid growth for a longer period of time. According to the forecast of the International Monetary Fund (IMF), India is expected to account for 7.1% of the world economy by 2025.
(3) India's foreign economic and trade relations
In recent years, India has paid more attention to the development of foreign economic and trade relations.
1. Trade authorities
The Ministry of Commerce and Industry of India is the national trade authority of India. It has two branches: the Ministry of Commerce and the Ministry of Industrial Policy and Promotion. The Ministry of Commerce is in charge of trade affairs and is responsible for formulating import and export trade policies, handling multilateral and bilateral trade relations, state-owned trade, export promotion measures, export-oriented industries and commodity development and planning. The Ministry of Industrial Policy and Promotion is responsible for formulating and implementing industrial policies and strategies that meet national development needs, overseeing industrial and technological development matters, promoting and approving foreign direct investment and introducing foreign technologies, and formulating intellectual property policies.
The Reserve Bank of India (Central Bank) is responsible for financial system regulation, foreign exchange control, and currency issuance. The Central Consumption Tax and Tariff Commission under the Ministry of Finance of India is responsible for tariff setting, tariff collection, maritime supervision and combating smuggling.
2. India Trade Relations
【Goods Trading Partners】 In FY2014 / 15, China, the United States, the UAE, Saudi Arabia, Switzerland, Germany, Hong Kong, China, Indonesia, South Korea, and Malaysia were the top 10 trading partners in India. The bilateral trade volume between India and the top 10 trading partners accounted for 46.4% of India's total foreign trade.
【Total trade in goods】 In 2014/15 fiscal year, India's imports and exports reached US $ 758.3 billion, down 0.7% year-on-year. Among them, India ’s exports were US $ 310.3 billion, down 0.7%, and imports were US $ 448 billion, down 0.6%; the trade deficit was US $ 137.6 billion, down 0.7% year-on-year.
[Commodity trade structure] India ’s main export commodities include petroleum, jewelry, transportation equipment, machinery and instruments, pharmaceutical products and fine chemicals, metal products, cotton yarn, fabrics, garments, electronic products, plastics and linoleum products. The main imported commodities include crude oil and refined oil, electronic products, gold, non-electronic machinery, jewelry, organic chemicals, coal and coking coal, metal ore and metal scrap, transportation equipment, edible vegetable oil, etc.
【Service Trade】 India service industry accounts for 61% of GDP. India is a representative of the relatively rapid development of global service trade, and at the same time has distinctive characteristics. In 2014, India's total import and export of service trade reached US $ 235.2 billion, accounting for 3.2% of global service trade. Among them, the service trade export was US $ 155.4 billion, ranking the eighth in the world, the import was US $ 79.8 billion, ranking the eighth in the world, and the service trade surplus was US $ 75.6 billion, which shows to a certain extent that the Indian service industry has greater competitiveness . On the other hand, it also shows that India's foreign service industry has insufficient demand.
[Service trade structure] From the perspective of the service industry structure, traditional service sectors such as transportation and tourism do not account for a large proportion of India ’s service trade, while computer and information services, communication services, financial services, etc. do not Occupying a considerable proportion, especially in the information technology industry, India has a comparative advantage, and has become the world's second largest software country after the United States.
【Service Trade Partners】 According to the data provided by the Reserve Bank of India, in 2008, the main partners of India's service trade were: the United States (14.1%), the United Kingdom (7.4%), Germany (6.4%), Europe (6.7%) and France (4.3 %).
3. Trade agreements in which India participates
[Global Trade Agreement] India is a party to the General Agreement on Tariffs and Trade in 1947. As the General Agreement on Tariffs and Trade was transformed into the World Trade Organization (WTO) in 1995, India also became an official member of the WTO based on the Uruguay Round Agreement.
[Regional Trade Agreement] India participates in more regional trade cooperation, mainly including:
In the 1975 Bangkok Agreement (now the Asia-Pacific Trade Agreement), India is one of its members.
In 1985, the South Asian Association for Regional Cooperation (SAARC) was established with India as a member.
In 1982, the Global Trade Preference System (GSTP) for developing countries initiated by the Group of 77 was established, and India joined in 1988.
In 1997, the Bangladesh-Sri Lanka-Myanmar-Thailand Subregional Economic Cooperation (BISMTEC) was launched.
In November 2000, the sub-regional cooperation between India and Myanmar, Thailand, Laos, Cambodia, and Vietnam, the "Mekong-Ganges Cooperation Program" was launched.
In January 2004, India and the leaders of six other SAARC countries (Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives) signed the "South Asia Free Trade Agreement Framework Treaty" and decided to establish the SAFTA in 2016. .
In addition, India also became a member of the Alliance for Cooperation around the Indian Ocean in March 1997. In August 2009, India and ASEAN signed the Free Trade Area "Goods Trade Agreement", and in 2010, the SAARC countries signed the "Service Trade Agreement".
4. Free trade agreement in which India participates
India values the development of overseas markets by signing bilateral free trade agreements. India has free trade agreements with Sri Lanka, Japan, South Korea, Malaysia and Singapore. Negotiations with the European Union, Australia, Indonesia and other countries on free trade agreements and participation in regional comprehensive economic partnership (RCEP) negotiations.
Under the framework of SAARC, India and Afghanistan, Nepal, Pakistan, Bhutan, Bangladesh, Sri Lanka, Maldives and other South Asian countries have signed different forms of trade agreements. India has officially signed bilateral trade agreements with 19 African countries. In January 2004, the Preferential Trade Agreement (PTA) was signed with the Mercosur Common Market of South America (MERGOSUR). In September 2004, a free trade agreement was signed with Thailand. In June 2005, the "Comprehensive Economic Cooperation Agreement (CECA)" was signed with Singapore. In August 2006, the Preferential Trade Agreement (PTA) signed with Chile came into effect. In August 2009, signed the "Comprehensive Economic Partnership Agreement (CEPA)" with South Korea; signed the Free Trade Area Goods Trade Agreement with ASEAN. In 2014, India and ASEAN signed a service trade and investment free trade area agreement. Approved by all ASEAN countries. In March 2010, signed the Economic Cooperation Agreement (ECA) with Finland. In February 2011, officially signed the "Economic Cooperation Agreement (EPA)" with Japan and the "Comprehensive Economic Cooperation Agreement (CECA)" with Malaysia.
At present, India is actively advancing FTA negotiations with the EU, Indonesia, Australia, New Zealand, GCC, Mauritius, Turkey, South Africa, Canada, Peru and other countries and regions. FTA negotiations with the United States and Russia have also been considered and prepared.
India ’s signed and advancing trade agreements have basically covered important economies on all continents. Since the establishment of the new government in May 2014, its economic and trade strategy based on Asia and the world, and access to resources, capital and technology has been further strengthened. Relying on its rapid economic growth, huge domestic demand market, sufficient mineral resources, and a superior geographic location connecting East Asia, the Middle East, and Africa, the Indian market's radiation capabilities continue to increase.
(4) India's investment environment
1. Indian investment authority
The government departments in charge of domestic and foreign investment in India are mainly: the Investment Promotion and Policy Department under the Ministry of Commerce and Industry, responsible for related policy formulation and investment promotion, responsible for related policy formulation and investment promotion, and under the Industrial Assistance Secretariat (SIA ), The Foreign Investment Executive Board (FIIA), the Foreign Investment Promotion Council (FIPC) and other institutions; the Corporate Affairs Department, responsible for approval of company registration; the Ministry of Finance, responsible for corporate tax-related matters and the approval of restricted foreign investment; Approval and foreign exchange management of foreign-funded offices and representative offices. In the approval of foreign investment, foreign investment projects that are approved by the "automatically effective" procedure are directly reported to the Reserve Bank of India, foreign investment projects that are not approved by the "automatically effective" procedure, or foreign investment projects that exceed the relevant regulations of the Indian government are now subordinate to the Ministry of Finance The "Foreign Investment Promotion Board (FIPB)" is responsible. The FIPB consists of the Secretary of Economic Affairs of the Ministry of Finance, the Investment Secretary of the Ministry of Commerce and Industry, the Business Secretary of the Ministry of Commerce and Industry, the Secretary of Economic Relations of the Ministry of Foreign Affairs, and the Secretary of the Ministry of Foreign Affairs of India. FIPB approves proposals with a total foreign capital inflow of less than 12 billion Indian rupees (approximately US $ 200 million). For proposals exceeding 12 billion Indian rupees, FIPB submits them to the Cabinet Economic Affairs Committee (CCEA) for review and approval.
India ’s official investment promotion agency also includes the Indian Investment Agency. The agency was established in December 2009 and was jointly established by the Central Government (DIPP), state governments and the Indian Federation of Industry and Commerce (FICCI) to promote focused, comprehensive and systematic investment of foreign capital in India and provide investors with quality investment And related services.
2. Regulations of the Indian investment industry
[Prohibited Industries] Nuclear energy, gambling and gaming industry, risk funds, cigar and tobacco industry.
[Restricted Industries] Telecommunications services, private banking, multi-brand retail, aviation services, infrastructure investment, radio and television broadcasting, etc. If the foreign investment exceeds the upper limit of the investment ratio prescribed by the government, it must be approved by the relevant government department.
Investment in business projects reserved for small businesses requires government approval. The Indian government does not have special preferential policies for foreign investment. Foreign-funded enterprises established in India are regarded as local enterprises, and they must abide by the industrial policies formulated by the Indian government as Indian enterprises. Foreign investment can only enjoy preferential policies like local Indian companies if they invest in industrial fields or regions encouraged by the government.
3. Framework for preferential investment policies in India
After the founding of India, India took a cautious attitude towards foreign investment as a whole, which restricted India's economic development. Since the implementation of economic reforms in 1991, the Indian government has gradually relaxed restrictions on foreign direct investment, and India has achieved rapid growth in the use of foreign investment in recent years.
India ’s preferential policies for foreign investment are mainly reflected in regional preferences, export preferences and special zone preferences. Currently, India has 173 special economic zones in operation. However, India's current special economic zone is essentially different from China's special economic zone. Its scale is smaller than that of China. It does not require comprehensive development and social development functions. Some single investment projects can also apply for special economic zones. In the 2013/14 fiscal year, India ’s Special Economic Zone exports increased by 4%, with exports reaching USD 82.3 billion, creating more than 1 million jobs.
4. India's investment advantages
From the perspective of the attractiveness of the investment environment, India's competitive advantages are as follows: relatively stable politics; good economic growth prospects; population of more than 1.2 billion, huge market potential; strategic location, radiating the Middle East, East Africa, South Asia, and Southeast Asia markets. The World Economic Forum's 2015-2016 Global Competitiveness Report shows that India ranks 55th among the 140 most competitive countries and regions in the world. According to a report issued by the National Council of Applied Economy of India, Gujarat is India ’s most investment potential state among the 21 more developed Indian states, Delhi, Tamil Nadu, Andhra and Maharashtra Ranked second to fifth. The survey mainly refers to 51 sub-indicators of the five major indexes. The main indicators are labor force, infrastructure, economic environment, government governance capacity and political stability, and subjective feelings. In addition, the investment environment in Bihar, Uttar Pradesh and Jharkhand is improving substantially. In the northern region, only Assam is included in the selection.
From April 2000 to December 2015, foreign direct investment totaled 408.7 billion US dollars (including profit reinvestment and other capital investments). India ’s foreign investment mainly comes from Mauritius, Singapore, the United Kingdom, Japan, the United States, etc. The investment fields mainly include financial and non-financial services, construction (including real estate development), telecommunications, computer hardware and software, pharmaceuticals, chemicals (except fertilizers) , Automotive, power, hotel and tourism industries, of which the total foreign investment attracted by the financial and non-financial services industry accounted for 17% of India's total foreign investment since 2000, about 48.1 billion US dollars. Currently, the world's top 500 companies investing in India include well-known companies such as HSBC, Vodafone, Volkswagen, Ford, Honda, Toyota, Hyundai, Nestle Foods, and Procter & Gamble. According to data from the General Administration of Industrial Policy and Promotion of India, throughout 2015, India attracted a total of US $ 39.4 billion in foreign direct investment, a year-on-year increase of 37%. According to the "World Investment Report 2016" released by UNCTAD, in 2015, India's foreign investment flow was 44.208 billion U.S. dollars; by the end of 2015, India's foreign investment stock was 282.273 billion U.S. dollars.
5. Indian market potential
According to the 2016 Global Retail Development Index, the compound annual growth rate of the Indian retail industry reached 8.8% from 2013 to 2015, and the annual sales exceeded the 1 trillion US dollar mark. It is expected that the total domestic retail market in India will reach 1.3 trillion US dollars in 2020.
According to the estimate of the Central Bureau of Statistics of India, at the constant price in the 2004/05 fiscal year, the per capita income of India in the 2012/13 fiscal year was Rs 38,856; at the current price, the per capita income was 67,839 rupees, which was about 1,260 US dollars (US dollar against the rupee that year The exchange rate is about 1:54). In the 2012/13 fiscal year, India ’s total domestic savings accounted for 30.2% of GDP, of which household savings accounted for 21.9% of GDP. The per capita monthly expenditures in rural and urban areas of India are 1430 rupees and 2630 rupees respectively. Rural residents' expenditures on food, fuel (non-transportation), clothing, medicine, education, transportation, and durable consumer goods accounted for 52.9%, 8%, 7%, 6.7%, 3.5%, 4.2%, 4.5%; urban military and civilian expenditures on food, education, fuel, transportation, and clothing accounted for 42.6%, 6.9%, 6.7%, 6.5%, and 6.4% of total expenditure, respectively.
Statistics show that India still lags behind the average level in the Asia-Pacific region in terms of actual final consumption expenditure. Nonetheless, the growing middle class and younger demographics have made India's future spending power continue to improve.
In India, the supply of general daily necessities is relatively abundant and normal. In addition to the most basic foods, the overall price level is quite high, far exceeding general expectations. In particular, the rent and sale prices of houses and land in big cities such as New Delhi and Mumbai are among the highest in the world.
6. Social Security in India
The overall public security situation in India is relatively good, and it is one of the countries with low crime rates among the countries with statistics in the world. However, there are great differences in different regions. Criminal cases in central cities such as Delhi, Mumbai, Kolkata, Chennai and Bangalore have occurred frequently. Some localities in the northwest, northeast and eastern regions have poor security, and thefts, robberies and homicides occur from time to time. Statistics from the United Nations Office on Drugs and Crime (UNODC) show that in 2014, there were a total of 41,623 murders in India, at a rate of 100,000 per 100,000 (the same applies below) to 3.2; there were 36,980 attacks, at a rate of 14.5.
In northeastern India, there are more than 200 different ethnic groups, including Christians, Hindus, Muslims, and primitive religious believers. Ethnic and religious relations are relatively complex. Since India's independence in 1947, it has become the most intense area of ethnic and religious conflict in India. Especially since 1992, a large-scale ethnic and racial conflict has broken out almost every year, and more than 14,000 civilians, security personnel and "armed elements" have been killed. According to statistics from the Indian government, there are currently 66 active terrorist organizations in All India, 34 of which are in Manipur. In view of the local security situation, the Indian government implements special policies in the Northeast, and foreigners need to apply for special permits for entry. And the possibility of the Chinese getting special permission is extremely slim.
Since the Modi government came to power, the concept of supremacy in Hinduism has risen. With the continuous progress of economic reforms, it has had a certain impact on the Indian caste system, sectarian interests, and social classes. The problem of social intolerance has occurred frequently. In particular, the tension created by local council elections has caused religious, racial, and class conflicts to intensify. These political and social factors have a greater influence on attracting foreign investment.
