If you are a part of a business that runs on the path of growth and development, India should undoubtedly be your next stop for setting up or expanding the business. Taking a jump of 23 notches in year, 2018 India has managed to land at Rank 77 in World Bank’s Ease of Doing Business report. Time and again, India has been considered a booming market for doing business. The volume of Foreign Investments serves as an indicator of the promising future that the Indian economy holds for international business.
Among all the currently emerging markets, China and India are the ones that are likely to be boosting global trade. India especially is eyed upon by an increasing number of international businesses with regard to setting up a business in India. However, a few others still carry a blank space on the question of setting up or expanding their business in the country. Read below a few reasons as to why India should be on your priority list while thinking of business expansion-
- Sustainability
The economic growth in India is predicted to accumulate in the emerging cities that have some of the largest development plans for infrastructure. The increasing population in the country translates to a greater need for businesses to support the livelihood, leading to increased demand and thus, sales. Moreover, the rural to urban transition implies that a greater share of the population will add to the middle-income strata. Data also shows that the companies entering India in the near future will sail through favorable conditions.
- Employability
India claims to have a labor force of nearly 530 million, out of which the majority is below 30 years of age. Numbers suggest that by the year 2021, 64% of the Indian population will lie in the working age group i.e. 18-59 years. This clearly implies that the Indian market has comparatively more years of service. Moreover, businesses can take advantage of the Indian youth that is looking for job opportunities beyond agriculture and daily wage. This can be leveraged as an opportunity for generating employment and increasing productivity.
- Cost-effectiveness
The Ease of Doing Business in India has witnessed a remarkable growth. The central government does not require an intervention for a Foreign Direct Investment of up to 100 percent in a private limited or a limited company. This, as a result, reduces the overall cost of setting up a company in India. Moreover, the cost of basic amenities like infrastructure, labor, food, transportation or even taxes is lower in India in comparison with other countries. Additionally, the urban transformation that country is facing brings a huge opportunity for international businesses to gain access to the combination of providing capital, technology, and strategic knowledge to the workforce.
- Legal Flexibility
Most of the countries are suspicious of Privatization. As a result, businesses prefer expansion in countries where they don’t have to deal with stringent policies. In the recent times, the Indian Parliament has passed several bills, ranging from the Goods and Services Tax bill to the Direct Taxes Code bill that are significant for businesses and provide transparency and uniformity in the Indian economy. The Indian government’s Make in India initiative is a major addition to increasing foreign investments in the country, whilst enabling foreign investments and promoting innovation through skill development and intellectual property protection.
To conclude, India has successfully crossed all the miles required for setting up a business or expansion in the country. Starting new operations entirely in a new country must be well-thought of and planned before any engagements in the process. The top Management Consulting firms in India, like Tecnova, assist renowned global organizations in setting up or expansion of business in the country. Firms like Tecnova make the entry of international organization in India easier by offering the advantages that Indian economy has to offer in order to implement and execute the strategies of growth and expansion.
Website: www.tecnovaglobal.com
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