Why Should You Invest in the Rapidly Growing Indian Economy?

 

In recent years, the Indian economy had been at the center stage of discussion. While some of the management consulting firms in India are very bullish on the Indian economy, some have their own apprehensions. No matter what the world talks about, the role of the Indian economy in making South Asia the fastest growing region in the world cannot be ignored. 

Tecnova, the India Management Consultant helps major giants develop a market entry strategy set up or establish their business in India. Here’s putting a list are key aspects about the Indian economy to provide you a clear picture of how the economy has unfolded over the past few years and what to expect in the coming years. This would help you obtain a better picture of the advantages of starting a business in India and why should you invest in the rapidly growing economy. 

• Economic and population growth 

According to data from the International Monetary Fund (IMF), India is the seventh largest economy (GDP, current prices) and is expected to become the fifth largest, overtaking the UK by 2019. In addition, India is the fastest growing trillion-dollar economy in the world. By 2050, the Indian economy is expected to overtake all other countries to become the second largest economy, only next to China. With the world’s largest youth population, India is home to over 1.3 billion people, of which a significant percentage comprises of youth. 

• Improvement in Ease of Doing Business 

In 2018, India climbed 23 ranks to reach 77 from 100 in the World Bank’s Ease of Doing Business index. In the last two years, India jumped 53 ranks to reach 77 from 120. Since the year 2011, this has been the highest improvement made by any large country. India now ranks in top 25 in the world on three indicators – getting electricity, getting credit and protecting minority investors, Department of Industrial Policy and Promotion. 

• Progress in Tackling Corruption 

Though corruption has been a common problem that companies have faced in the past, significant efforts have been made in order to reduce corruption. According to the Global Competitiveness Report 2018 of World Economic Forum, India ranks 58- which is 5 ranks higher from its position in 2017. While on one hand, many processes have been streamlined and made online to reduce bureaucracy in the system, on the other hand, a number of unnecessary age-long processes have also been removed in granting licenses and permits to the companies. 

• Common Taxation for all States 

Taxation has always been a problem for most of the Indian companies having a pan-India presence. With the roll-out of Goods and Services Tax (GST), the problem has been solved to a great extent. Though the GST roll-out is still in its teething stage even after more than one year, it has helped companies in setting up bases at multiple locations without being worried about local state taxes. Moreover, the success so far looks promising and reduced administrative and bureaucratic process for companies. 

• Demonetization had mixed success 

Demonetization is one of the most talked about topics with regard to the current central government. While the government has always advocated the benefits achieved by demonetization, there is another set of critics which is skeptical of the benefits of demonetization. Though it may have slowed down the economy in the short-term, it may have positive long-term implications. It has led to a significant jump in digital transactions occurring in the country. It has also made the country’s financial system more inclusive by bringing more customers into the financial ecosystem through mobile wallets. 

• India needs to get more women working 

India has been ranked 108 in 2018 in World Economic Forum’s Gender Gap index. While India has made some progress in areas such as improvement in wage equality for similar work, there are still certain areas where India needs to improve. It has been ranked 142 out of 149 countries in the economic opportunity and participation sub-index. "It (India) needs to make improvements across the board, from women's participation to getting more women into senior and professional roles," WEF said.  

The major management consulting firms in India help foreign businesses enter the rapidly growing Indian market while developing a suitable market entry strategy. 

Website: www.tecnovaglobal.com