Why India?
In the past few years, India has emerged as one of the most attractive destinations for overseas businesses and foreign investors. More and more foreign companies are eyeing to set up their business in India owing to its numerous advantages such as strategic geographical location, business-friendly environment, relatively stable government, world-class infrastructure, skilled resources, cheap labour, strong democratic set-up, flexible government policies, reliable judiciary system and much more. Owing to these advantages, several renowned global corporate giants have already set up their base in India.
Indian Economy and FDI Inflow
India is one of the world’s largest and fastest-growing economies. With the expected Gross Domestic Product (GDP) growth of 8.3% in the fiscal year 2021-22 and the highest ever Foreign Direct Investment (FDI) inflow of USD 67.5 billion in the first 9 months of the financial year 2020-21, India has become the fastest-growing economy as well as the largest recipient of FDI, globally.
As per the recent data released by the Ministry of Commerce and Industry, the FDI inflow is 22% higher during April to December 2020 in comparison to USD 55.14 billion in the corresponding period last year. The above data reflects the astounding growth rate of the country.
Ease of Doing Business in India
As per the World Bank’s Ease of Doing Business Ranking 2020, India ranks at 63rd position by climbing 79 spots from its previous year’s ranking. India also ranks among the top 10 improvers for the 3rd consecutive time among 190 countries.
Apart from being a fast-growing nation with a surge in economic growth and ease of doing business, there are many more compelling reasons to do business in India. Let us look at them.
Why Choose India for your Business?
Stable Economy
India has shown remarkable economic growth in the past few years. The country has developed a high macroeconomic stability ranking in the World Economic Forum’s Global Competitiveness Index. India has scored 90 out of 100 and ranked 41 among 141 economies. Some of the reasons contributing to this growth are robust democracy, key structural reforms by the government and increased government investment.
Large Consumer Market
India ranks as the world’s largest democracy with a population of 1.36 billion. This offers a huge consumer market for manufactured goods and services. Furthermore, as per the reports of the World Economic Forum’s Global Competitiveness Index, India ranks on 3rd position among 141 economies for its market size. Looking at the growing population and increased spending habits, the market is expected to further surge. The total consumption expenditure is anticipated to reach USD 5.7 to 6 trillion by 2030.
Government Initiatives
Over the years, the Indian government has worked towards landmark structural and business reforms which are expected to further propel the growth of foreign investments in the country. Several reforms have been made by the government under the ‘Start-up India Movement’ to attract FDI and foster business partnerships. Moreover, the government has eased FDI restrictions and policies intending to attract huge investments. One of the impactful initiatives was the increase in foreign equity caps for insurance and defense which has alleviated the business environment. Furthermore, the economic stimulus packages present enormous opportunities for the private sectors to set up their manufacturing hubs in India.
Comprehensive Tax System
India boasts of its vast network of tax treaties with other countries. Besides, the introduction of Goods and Service Tax (GST) and Direct Taxes Code has further eased doing business in India.
Low Operational Cost
As compared to other developed countries, the operational cost is much lower in India right from the cost of basic amenities like labour, electricity, infrastructure to anything required to set up a business. This helps foreign companies drastically cut down their cost of production.
Doing business in India offers vast opportunities to foreign companies. However, owing to the large and complex market as well as constantly evolving rules and regulations, it could be challenging to operating in a new country. Therefore, it is advisable to have a local business partner who could guide you on every step of your business growth in India.
How Can Aplite Advisors Help You?
Aplite Advisors specialise in providing company advisory and taxation services to SMEs and multinational companies eyeing to set up their business in India. We can assist you with everything that is required for your company setup and operations in India.
We can help you understand the local market, form effective market entry strategies, comply with legal and regulatory compliances, obtain business licenses, find an office space, build an efficient team, find customers, appoint directors and file tax returns, among others.
We will ensure that you have timely and right support tailored for your business needs to help you succeed in the Indian market.
