organic chemistry,
pharmaceutical and biotechnology,
medical equipment,
computer techniques.
This is where foreign entrepreneurs are most likely to place their capital due to the low labour costs. Almost 50% of all investments were in the manufacturing sector. Investors are also increasingly willing to invest in research, testing and technical services, where the added value is much higher than in other sectors. If a foreign entrepreneur chooses India as a destination country to expand his business, there may be three reasons why he does so:
First of all because of the cost,
Secondly, these investments can be linked to meeting local market demand, and the Indian market is huge.
The last option is to look for local talent, something extremely important in the R&D sector.
As for the overseas expansion of Indian companies, it is important to note that it is modest compared to companies in other emerging economies, such as China. They mainly look to other markets for know-how, new production lines, a global portfolio of intangible assets and highly skilled employees, and the industries of greatest interest are those involving advanced techniques, namely pharmaceuticals, transportation equipment, electronics, IT and telecommunication services. Capital is mainly located in highly developed countries, which have a more mature market due to more demanding and educated consumers.