Released on = March 16, 2007, 3:40 am

Press Release Author = Shushmul Maheshwari

Industry = Retail

Press Release Summary = The growing desire of Indian companies to set base in global
markets will lead to a 3-fold increase in FDI out of the country in 2007.

Press Release Body = A recent study by Institute of International Finance (IIF), a
Washington-based global association of financial institutions, predicts that the
hunger of Indian players to operate in foreign lands will lead to triple fold rise
in foreign direct investment out of the nation in 2007.

The report by IIF expected that the good performance of Indian economy and improving
policy environment would accelerate the direct investment in 2007 to $8 Billion from
$6.5 Billion in 2006.

The figures might appear a small amount as against the frequent investment
announcements of hundreds of millions of dollars abroad by Indian majors like
Suzlon, Ranbaxy, Subex Systems, Dr Reddy's Labs, and Tata Tea, but industry experts
say this is due to the fact that big deals usually have foreign financing components
or debts.

IIF predicts the FDI would mount to a massive $211 Billion in 2007, the highest
value recorded from $185 Billion in 2006.

The study by IIF cites booming Indian economy and an appetite for deals to
capitalize on the market as the factors fueling growth in investments in India.
Meanwhile, Indian players continue to hunt for business grounds in foreign lands in
terms of new consumer markets and production.

According to the RNCOS report "India Retail Sector Analysis (2006-2007)"India enjoys
the highest retail density in the world. Current data shows that India has one
retail outlet for every hundred people. Opening doors to foreign players by
respective governments has helped in the global expansion of the retailers. To be
successful in the Indian retail market, retailers have to overcome the cultural and
regional differences as these factors dissuade retailers in India to follow a single
retail format.

The report further highlights the important features of the Indian organized
retailers. As per the report, organized retail sector will account for 10% share of
the total retailing by the year 2010 at a growth rate of 30% annually. It gives a
detailed account on break up of products sold in organized retail, share of food
industry in organized retailing and its growth rate, industry segmentation by retail
format, product penetration, and advertising and marketing scenario in retail
industry.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM058.htm
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Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com