You are probably aware that plenty of multinational companies have branches in India, from Apple and Microsoft to Coca-Cola and Pepsi, and with good reason. So, if you too are thinking about starting or branching out your business to India, we came up with several arguments to show you that this is the right choice. Take a look.
It is a startup hub
Entrepreneurs looking to start a new business are constantly on the lookout for destinations where their dream can become a reality. India is one of those places that are very accepting of new ideas and that is why it is considered to be a hub for startups of a certain kind. For example, e-commerce, technology and finance startups thrive in India’s business culture. However, just like with any endeavor, you have to be properly prepared and come up with a strategy for developing your company.
Its laws are business-friendly
In the past few years, the Indian Parliament has been discussing several bills that could greatly benefit the industrial sector. While the Direct Taxes Code Bill may have to wait until 2020, the Goods and Services Tax Bill has already been passed. Another very important bill – the Land Acquisition Bill – has for its goal to promote industrial development as well as social justice. Furthermore, the ‘Make in India’ initiative aims to promote foreign investments and skill development. It also focuses on IP protection. All of these policies are making India more attractive to companies whose countries are stricter.
Its infrastructure keeps developing
Another positive thing about starting a business in India is that its infrastructure keeps growing. In addition to having various facilities for manufacturing, the office sector is also evolving. Apart from IT companies, there is plenty of room for healthcare facilities and educational institutions as well as co-working spaces, e-commerce and consultancy businesses and so much more. In addition, the focus is also on making the infrastructure sustainable and eco-friendly and providing workers with healthy environments where they can reach their full potential.
Operational costs are more economical there
The truth is that everything is more affordable in India, including food, transportation and the internet. From buying equipment and investing in infrastructure to dealing with costs of labor and taxes, setting up a company in India is much cheaper than doing it in Singapore or the U.S. Considering the population of India, a company can have a huge customer base as well. Furthermore, seeing as how foreign direct investment no longer needs the Central Government’s intervention, the costs of establishing a business are much lower.
They have more spending power
India’s disposable personal income has reached an all-time high in 2018, which means that they like to buy new products. So, if you produce and release a certain product in India, the chances are high that you will find an audience.
It has a young and motivated workforce
Being the second most populated country in the world, it’s no wonder that India has a huge workforce. The median age of people in India is expected to be 29 in 2020, which is lower than those of China and the U.S. That means that Indian workers can work for your company longer. Furthermore, more than half of its population is under the age of 35 meaning that they are quite tech-savvy. There are plenty of opportunities in India now that the workforce is no longer interested only in daily wage jobs and agricultural work.
English is an official language
Seeing as how most schools teach in English, a company should not have a language barrier, unlike in some other Asian countries. This means that you will get your point across with no issues when it comes to your employees and it will be easier for you to reach your target audience as you will avoid any potential mistranslations.
Considering all the benefits you can experience if you open a business in India, it’s no wonder giants like Sony and IBM are investing in this country. From lower costs and more friendly laws to an active and young workforce, your business can really thrive in India, so make the most out of this opportunity.