The paper "Market Feasibility for Investment in India by a Latin American Mobile Firm" is an outstanding example of coursework on marketing. India is one of the few countries that have been able to restore investor confidence even during the toughest of economic times. Since 1990, India has received a steady increase in capital inflows, foreign direct investments and overseas participation, which reflect the extent to which the Indian market has fared well (Edgar, 2012). As a result, foreign companies are viewing the South Asian country as a strategic hub for investments, owing to the government’ s investor-friendly policy.
India is the second-most populous country in the world and has a large surface area. The large population ensures a reliable domestic market for locally produced goods and services. The Indian economy has reached the orbit of a high economic growth rate (Sinha, 2004). Unlike 20 years ago, India is widely considered to be an emerging global economic player. As the third-largest economy in the world in terms of Purchasing Power Parity, India is a natural preference for foreign direct investments. Foreign Investment in India Foreign investments have played a crucial role in the growth and development of India’ s economy.
Investments by foreign firms in various sectors of India’ s economy such as telecommunication and energy and infrastructure have enabled the country to achieve an outstanding degree of financial stability. Today, India is one of the world’ s largest and fastest-growing economies, despite the fact that it has a large population. Moreover, foreign investments have allowed India to focus on the development of areas that need economic attention and address the various social issues that challenge people (Hasan, 2001). Gardner (2000) has noted that since independence, successive governments of India have continually sought to attract foreign direct investments from the world’ s major investors such as the United States of America, Britain, France, and Germany.
Foreign investments in India are allowed through financial collaborations, preferential allotments or private equity, through joint ventures and by way of capital markets. However, foreign investments are not allowed in the areas of arms, nuclear coal, railway or mining industries. To make the local market attractive to potential foreign investors, the government has implemented a number of projects in sensitive areas such as electricity generation and distribution, railway and road development and stabilization of the internal economic system.
Recently, the Indian national government passed legislation that allowed foreign direct investments to provide up to 100% of the financing required for certain projects such as the construction of tunnels and bridges. Currently, the government allows foreign investments in financial services including the rapidly growing debit card industry.