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The Indian economy is one of the fastest growing in the world, with GDP growth touching 9.4% in 2006. The stock market has grown about 300% from 2002 to 2007, with Private Equity, Mergers and Acquisitions, Buyouts, and Venture Capital investments reaching $7.5 billion in 2006. Supported by exponential domestic growth, free and efficient capital markets, India continues to attract foreign investments, enabling it to broaden its competitive advantage in not only IT but many other industries as well.

We feel India is a very attractive destination for investment. Here are a few reasons why:
High Growth
India’s current GDP is around $1 trillion and with estimated future growth rates around 8 percent annually, the GDP is projected to reach $2 trillion in nine years. Goldman Sachs believes, if growth continues at its current pace, India will be the world’s third-largest economy by 2050, behind only US and China.

Copious Opportunity
Analysts estimate the market for offshore services will grow to $160 billion by 2014 from its current $45 billion base in 2007. India is an off shoring hub for most Fortune 500 companies and start-ups. It’s not commonly known that India is the largest manufacturer of motorcycles, second-largest maker of small cars, third largest of automotive components, and has quietly become the fourth-largest producer of pharmaceuticals. It is also one of the largest exporters of steel, among the largest consumers and producers of energy in Asia, and it has one of the largest forging facilities in the world. All of these industries create opportunities for further investments.

Efficient Capital Markets
There are 9,000 listed companies in India, making it the market with the largest number of both small and midcap public companies globally. India has the second-largest Mergers and Acquisitions (M&A) market in Asia, with $40 billion spent on such deals in 2006.

India’s capital markets are market driven and adhere to the free economic principles of supply and demand. Such a vigorous financial structure has precipitated several success stories for the foreign and local investment institutions exemplified by the high rates of returns via Initial Public Offerings (IPO) and M&A in the country. The market driven valuations, coupled with multiple exit strategies, has instilled a confidence in the financial system of the country resulting in an incursion of foreign capital flow into India.

Emergence of World Class Organizations
Infosys and Tata Consulting Services (TCS) in information technology, Bharti and Reliance Communications in telecom, Bharat Forge in manufacturing, Tata Steel and Tata Motors in steel and small-car markets respectively, Bajaj Auto and Hero Honda in two-wheelers, Ranbaxy in pharmaceuticals, and Reliance Industries, considered to be the GE of India, represent some companies from diverse segments that have gone public and grown into global leaders, proving that investments in India can indeed gain international recognition.

Demographics and Human Capital
There is an enormous availability of well-educated human capital. Of India's 1.1 billion people, half are under 25 and 65% are of working age. There is a domestic middle class of over 100 million household whose disposable income, and hence purchasing power is growing rapidly.

There is a steady incursion of talent pool, a necessary prerequisite for growing businesses. There are 2.4 million English-speaking students graduating annually from Indian educational institutions, making India an attractive domicile for sourcing talent to develop products and services. You can get high quality management, engineers, scientists, and business people in India who can serve global markets.

An Ecosystem for Developing and Protecting Intellectual Property
India has developed a renowned ecosystem for developing intellectual-capital based businesses as evidenced by the stupendous achievements chronicled worldwide in the past few years. The businesses employ western style management as well as follow general guidelines of the Anglo-Saxon type ‘Common Law’ accounting and legal system. The existence of a strong and familiar legal system that protects intellectual property and honors contracts provides confidence and transparency amongst international and domestic business communities who wish to exploit the competitive advantages of India.