Hello, I have three (3) questions that need to be answered, thank you: 1.) India

Question

Hello, I have three (3) questions that need to be answered, thank you:

1.) India currently has a purchasing power parity of $7.411 what does this mean for foreign investors such as those from the U.S.? and why is it attractive?

2.) India tends to have english-speaking managers, why is this attractive to foreign investors from the U.S., Canada, etc. Will the flow of business be easier?

3.) India recently free'd up 15 sectors in the country through reforms ranging from defense to civil aviation. What does this mean for foreign investors and why is it attractive?

Explanation / Answer

Q.1. Purchasing power parity (PPP) is a tool that is used to compare economic growth among nations. It estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.

That is it tells about the number of units of a country's currency required to buy the same amount of goods and services in the domestic market of another country.

Thus PPP of $7.411 implies that $7.411 are needed to buy a dollar's worth of goods in the country as compared to the United States.

It is attractive because India is a cheaper country.

2) English being an international language would provide the businesses a competitive edge over others. Therefore foreign investors from US canada are interesting in investing in India.

3) It means now foreign investors would be able to invest in these freed sectors as well.

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