IndoCarib
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Why Coca-Cola, Ikea and other big companies are choosing to go into India just as its growth begins to slow.
FORTUNE This week, Coca-Cola (KO) and Ikea bet billions of dollars on India's consumers curiously enough, at a time when growth across one of the world's fastest-growing economies has markedly slowed.
Over the next several years, Coca-Cola, the world's biggest soft drink maker, and its local partners will spend $5 billion to expand distribution and add capacity to meet rising demand. This follows a move by Ikea, the world's largest furniture maker, to enter India with a $1.9 billion investment. It expects to open 25 stores there over the next 15 to 20 years.
Indeed, the commitments will probably take some pressures off of New Delhi policymakers, who've been trying to boost faltering foreign investor sentiment, as India's economy hasn't been growing as fast as it once did. For the fiscal year ended March 31, GDP grew 6.5%, the slowest pace in almost a decade. Sectors such as manufacturing, mining and agriculture did poorly, raising new concerns about the economy
India slows, becomes investment hotspot? - The Term Sheet: Fortune's deals blog Term Sheet
With the investments pouring in and Dr.Singh taking over the helm of finance ministry, Indian economy will start looking up again
FORTUNE This week, Coca-Cola (KO) and Ikea bet billions of dollars on India's consumers curiously enough, at a time when growth across one of the world's fastest-growing economies has markedly slowed.
Over the next several years, Coca-Cola, the world's biggest soft drink maker, and its local partners will spend $5 billion to expand distribution and add capacity to meet rising demand. This follows a move by Ikea, the world's largest furniture maker, to enter India with a $1.9 billion investment. It expects to open 25 stores there over the next 15 to 20 years.
Indeed, the commitments will probably take some pressures off of New Delhi policymakers, who've been trying to boost faltering foreign investor sentiment, as India's economy hasn't been growing as fast as it once did. For the fiscal year ended March 31, GDP grew 6.5%, the slowest pace in almost a decade. Sectors such as manufacturing, mining and agriculture did poorly, raising new concerns about the economy
India slows, becomes investment hotspot? - The Term Sheet: Fortune's deals blog Term Sheet
With the investments pouring in and Dr.Singh taking over the helm of finance ministry, Indian economy will start looking up again