20 REASONS FOR SETTING UP BUSINESS IN INDIA

Despite of Covid situation in the country as well as worldwide impact of same, India has managed to receive highest ever foreign direct investment in FY 2021 although there has been very less investment inflows globally. In India, FDI has increased From USD 74.39 Billion in FY 2020 to USD 81.72 in FY 2021.

This increase in FDI is the outcome of government of India’s policy and various steps taken to improve the ease of doing business and to attract foreign investments into manufacturing capacity of domestic companies and an into infrastructure projects.

Every year, India is attracting more and more global companies who want to set up business in India and invest in Indian markets.

We are providing 20 good reasons for setting up business in India by any foreign enterprise.

1. India is world’s biggest democracy.
2. It is one of the world’s fastest growing economies. During Financial year 2020–21, during first 9 months, total FDI in India amounted to USD 67.54 Billion.
3. It has largest youth population in the world and this trend will continue till year 2030.
4. Huge market — Approx. 500 Million Middle class consumer base with good purchasing power.
5. Second largest telecommunication market in world with subscriber base of 1.18 Billion.
6. Fourth largest automobile industry in world and by 2026, it will be in no. 3 position.
7. Enjoys 3% share in global Biotechnology industry. By 2025, expected to achieve USD 100 Billion.
8. World’s largest offshoring destination for IT companies across the globe. Estimated revenue from ITES AND BPO was USD 135 Billion.
9. World’s 5th Largest global destination in RETAIL space.
10. Ecommerce- Estimated revenue by 2027 is USD 200 Billion.
11. Majority of the Fortune 500 companies have R&D centre and or assembly line in India.
12. In ‘World Bank’s Ease of Doing Business Ranking 2020', India ranks at 63rd position from previous position of 142nd.
13. It has huge number of scientist and technicians, third largest in the world.
14. National Infrastructure Pipeline (NIP) has been announced by Hon’ble Finance Ministry with an intention to provide world-class infrastructure across the country. It will attract investments in infrastructure sector.
15. Approx. 7000 projects have been identified under NIP totaling to approx. Rs 110 crore.
16. Sectors such as Roads (18%), Urban, Energy (24%), and Railways (12%) would be covered under NIP amounting to around 71% of the projected investments in infrastructure projects in India.
17. Introduction of new tax regime in form of Goods and Services Tax (GST), has integrated various indirect taxes and is the biggest tax reform which will lead to common national market.
18. With the advent of North-South Transport Corridor (INSTC), connectivity to Europe and Central Asia may be achieved which will increase economic influence of India in the world.
19. From Pacific, there has been shift in Centre of global maritime to Indian Ocean Region. Further, India is boosting its manufacturing capabilities and will be largest manufacturing hub along with China by 2030.
20. Low labor costs, attractive incentives for new manufacturing enterprises, skilled and talented human capital, and a reduced corporate tax rate are driving India towards becoming an alternative hub for the global manufacturing supply chain.

Above is an illustrative list of reasons for business set up in India by foreign companies.

India is one of the fastest growing economies in the world with huge middle class consumer base, skilled and talented human capital and largest English speaking youth. Further, government of India has taken lot of initiatives for ease of doing business in India as well as attracting foreign investment in India. Due to these reasons, India has become an attractive destination for Foreign company registration in India and investment in India.