India is the biggest democracy in the globe with uncountable resources. It offers countless opportunities for investments, both domestic and overseas. The Indian Government has jumped into drastic economic reforms since 1991 in terms of the global markets. FDI was liberated enormously via review of the nation's FDI policies. Relaxing the strict regulatory control on industries, streamlining investment policies and encouraging FDI investment in construction industry in India had buttressed its cause and stand on the international scene as an influential player and a favored investment hub. India has one of the most generous and translucent policies on FDI amid the emerging economies. FDI up to 100 percent is permissible under automatic route in all activities and segments except some segments like manufacturing of cigar and cigarettes of tobacco, electronic aerospace and defense equipment’s, etc.

The Indian government lately announced an array of reforms, including permitting foreign direct investment (FDI) in multi-brand retail till a level of 51%. Wal-Mart the American retailing hulk has hit headlines recently. Foreign players would aid in setting up improved supply chain and logistical competences supporting noteworthy improvements in infrastructure. This has however gotten a mixed reply from opposition leaders and economists. The Indian Government is also presently considering proposals to lift caps on Insurance and retirement pension industries. In a nutshell, India has marked its influx on the global economic scene and stands out as a favored hub for foreign investments and surely is one for the future. Tier II and III cities in India have a colossal potential for investments in the emergent outsourcing market, IT, off shoring and retail and real estate development regions.

India stands to profit from the speedy development of these emergent economic segments. With most firms trooping to invest in the tier one and two cities, major development is expected in these cities. The biotechnology and tourism segments have performed moderately remarkably with medical tourism racking in substantial revenue in the tourism subdivision. The Indian government has taken a hands-on methodology to investment promotion in the emergent markets economy for unvarying development of the nation by decongesting tier one cities. Economic prospects however look pronounced for the emerging segments with striking figures having been posted in the first quarter this year.