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UK Investment in India - Affluence Advisory

India has emerged as one of the most attractive destinations not only for investments but also for doing business. India jumps 79 positions from 142nd (2014) to 63rd (2019) in u2018World Banku2019s Ease of Doing Business Ranking 2020. We at Affluence Advisory Private Limited provide a comprehensive range of services for setting up Foreign Entities and their compliances across India

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UK Investment in India - Affluence Advisory

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  1. RECENT TRENDS OF UK INVESTMENTS IN INDIA Affluence Advisory Pvt. Ltd. Contents: FDI in India: An Overview UK FDI in India Ease of Doing Business in India contact@affluence.net.in

  2. FDI in India: An Overview Opportunity Ideas Value India received its highest ever annual FDI inflow (gross) of USD 83.57 billion in FY 2021-22, beating the previous high of USD 81.97 billion set in FY 2020-21. FDI Equity inflow in manufacturing increased by 76% in FY 2021-22 to USD 21.34 billion Effective collaboration among investment partners for strategic growth and expansion into the Indian subcontinent. FDI inflow to India is expected to touch USD 100 billion in FY 2022-23. This is also supported by the CPI inflation rates which are projected to reduce to less than 4.5% due to supply chain easing in the coming months. Targeting untapped Indian markets where recent Ease of Doing Business Reforms have been implemented. Sectors include coal mining, insurance and civil aviation. ‘Computer Software & Hardware’ has emerged as the top recipient sector of FDI Equity inflow during FY 2021- 22 with around 25% share followed by Services Sector (12%) and Automobile Industry (12%) respectively. 1 The expected ease of doing business is set to increase which will attract more foreign capital flows. 2 Curating investment strategies for large scale investments. Sources: (1) Ministry of Commerce and Industry, Ministry Press Release, 2022; (2) PHD Chamber of Commerce and Industry, Economy to resume Normal Growth Curve in 2022-23, 2022

  3. Net FDI inflow into India country wise (FY 2017-22) Implications: 70 • From the graph, it can be deduced that the total net FDI inflow in India has given a sizeable rise in the past 5 financial years growing at a CAGR of 5.54% in the said time period. 60 Net FDI (Billion $) 50 40 • The net FDI inflow of UK has grown at a CAGR of 14.87% during the same period. This is misleading since the absolute amount of FDI from the UK is still very small, contributing to less than 3% of the total FDI inflow, way behind countries like Singapore and Mauritius. 30 20 10 0 2017-18 2018-19 2019-20 Financial Year 2020-21 2021-22 • This clearly represents an opportunity to encourage FDI from the UK. Total FDI UK FDI Singapore FDI US FDI Mauritius FDI Data Sources: (1) Reserve Bank of India, Annual Report, 2022

  4. GOVERNMENT REFORMS TOWARDS EASE OF DOING BUSINESS • India has emerged as a top investor destination, largely due to the new government reforms that have facilitated the ease of doing business in India. • Business executives have become better informed about reforms resulting in renewed optimism about doing business in India. Approximately 70 to 80 percent of MNC leaders are more likely to do business in India after recent policy reforms. 1 Advantages of doing business in India: • Large population • Low operational costs • New wave of startups in India • Business friendly laws • India ranked 63rdin the Business Doing Report, 2019, jumping up 79 places from the 142nd position in the Report published in 2014. Sources: (1) Deloitte, India’s FDI Opportunity Through an Investor’s Lens, 2021; (2) Ministry of Commerce and Industry, Ease of Doing Business Report, 2020

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