India: Business Expansion Destination?

India is fast becoming an attractive destination for foreign investments.

The Indian Government has taken huge steps to ease the regulatory environment for foreign investment, catapulting India into the position of one of the fastest-growing economies in the world.

It has been ranked among the top attractive destinations for inbound investments in the world, according to Ernst and Young.

So, what has India got that is so attractive to foreign businesses?

One of the world's fastest-growing economies

  • India is on track to remain one of the fastest growing economies in the world;

  • Foreign Direct Investment (FDI) inflows have increased by 37% since the launch of the “Make in India” initiative in 2014 (see below);

  • Leading investors ranked India as the most attractive foreign investment market, according to the Ernst & Young Emerging Markets Center.

Largest youth population in the world

  • India is forecast to have the world’s largest youth population by 2020;

  • India is forecast to be the largest supplier of university graduates in the world by 2020; 

  • India has the third largest group of scientists and technicians in the world.

Significant domestic market

  • Rising annual gross household income will be the biggest driver of increasing consumption in India;

  • A growing middle class that’s expected to more than triple to 89 million households by 2025;

  • India’s consumer story will be led by its 129 million urban mass consumers. This will be further shaped by 440 million millennials and 390 million from generation Z.

(Urban mass is a category that includes people with undergraduate degrees in non-labour intensive work, blue-collar workers and migrant workers.)

Rising economic influence

  • The Global Marine Trends 2030 project predicts that the centre of global maritime trade will shift to the Indian Ocean region. India and China will be the largest manufacturing hubs of the world by 2030;

  • In the next five years, India is expected to have greater economic influence across the Asia Pacific region, according to 95% of executives in a survey by Baker McKenzie and Mergermarket.

Indian infrastructure story

  • Over the next three decades more than 350 million Indians will move into cities;

  • Over the next two decades more than USD 1.5 trillion infrastructure investments are planned;

  • Investments planned across the key government initiatives are shown here:

Planned investments India

Highways - USD 106.5 billion; Railways - USD 131.7 billion; Ports - USD 61.5 billion (Port development) and USD 123 billion (Port-led Industrialisation); Airports - USD 58 billion; Industrial corridors - USD 100 billion; Smart cities - USD 14.6 billion; Clean India - USD 29 billion

A business-friendly government with strong reform agenda

  • India registered a record improvement on the Ease of Doing Business index ranking from 142 to 100 between 2014-2017;

  • India ranks 40th on the Global Competitiveness Index (GCI) 2017-18;

  • Goods and Services Tax (GST) implementation signals substantial tax reforms.

Make in India

The Make in India initiative was launched in September 2014 as part of a wider set of nation-building initiatives. Its purpose is to transform India into a global design and manufacturing hub (partly through increased foreign investment) and represents a complete change of the Government’s mindset – a shift from issuing authority to business partner.

An “Investor Facilitation Cell” (IFC) dedicated for the Make in India campaign has an objective to assist investors in seeking regulatory approvals and to provide support services through the pre-investment and execution phases, as well as after-care support.

Under the programme, India has opened up various sectors for investments, including defence, railways and space. In addition, regulatory policies have been relaxed to facilitate investments and make business easier.

Starting up in India

What can we support you with?

  • "Quick Start" company formation and registration allowing you quickly enter new markets;

  • Customised payroll solutions to set up payroll in new locations;

  • Tax advice and compliance services in relation to your employees;

  • Corporate tax advice and compliance services including tax and social security reporting;

  • Selection and recruitment of qualified candidates to reduce your time spent on the recruitment process;

  • Global mobility services including visas and immigration, relocation and destination support, travel and accommodation booking;

  • Tailored cultural awareness programmes.

Our service takes care of the set up of your corporate and financial structure, the recruitment and deployment of your staff and the management of your administration, reporting and filing requirements.

Contact Shelley Lloyd or Stuart Beaty to find out how we can support you with any venture into India.