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Why Should Global Business Invest In India


If you’re not planning on investing your business in the consistently fastest growing economy in the world projecting a whopping 6.1% growth rate in 2019, you are not earnestly chasing global potential. India has as outstanding levels of economies of scale to offer and by not venturing into this buzzing market; your business runs the risk of stagnating and losing relevance to your customer. Business investment in India essentially means adapting to the markets, recognizing and creating demand, and acquiring new customers.

Why Business investment is an Effective Growth Strategy

Why Should Global Business Invest In India

The Indian economy has witnessed an overwhelming spur of potential in the last decade and the growth trajectory continues to appear lucrative. The industries have not only propelled the country’s economy to become the third largest in the world based on purchasing power but the country also houses one of the fastest growing workforces in the world. India enjoys the benefits of demographic dividend as a half of its population is below the age of 25 and more than 65% is below the age of 35. This young nascent energy drives dynamic start-ups, lucrative ideas and invincible strategic plans to spearhead the country’s growth and economic endeavours.

With a whopping 37%, increased FDI flows ever since the “Make in India” initiative, India is surging past its own records in the growth trajectory. The country has been increasing its investment on infrastructure such as airports, smart cities, hotels, ports, roads, bridges, hospitals, renewable energy and power plants, all of which create empowered and favourable conditions for inviting global investments. India has set an example of strong historical growth rates, particularly within the information technology and BPO (business process outsourcing) sectors. The country is enduring parliamentary democracy and liberal economic policies make it a secure destination. Just when one thinks India is due for a market correction, the dynamic duo of Prime Minister Narendra Modi and team prove the global market wrong .They have made great strides in transforming the economy. The splendid diversity that the country has to offer has no bounds. The Indian economy offers investors exposure to a wide range of opportunities from commodity and pharmaceuticals to infrastructure, energy and agriculture. India is equipped with a strong services sector, particularly in knowledge-based services. India very well proved that industrialization and export of commodities and products is not the only single path to rapid economic development.

In today’s times, value in emerging markets is locked-up in resources, energy and materials. Indian policies has been designed with the ideology that the value of these can only be extracted by making a reform in the business. These include FDI, the Land Acquisition Bill, pharmaceutical and healthcare, the coal and power sector, direct transfer subsidies etc.

Why Invest In India

A robust, diversified and well-regulated financial eco-system has helped India outshine the world even during the global financial crisis and emerge as a robust market f built with quality, resilience and transparency. India is banking sector acts as the backbone to this growth trajectory and strong corporate governance ensures that the economy is enriched with transparency.


In a welcome move, recently India corporate tax rates has been slashed from 30% to 22% for existing companies and from 25% to 15% for new manufacturing companies. Including a surcharge and cess, the actual tax rate for the existing companies would now come right down from 35% to 25.17%.


Today, the Indian economy boasts of a stable annual growth rate, booming capital markets, and rising foreign exchange reserves making it an attractive destination for the foreign investors.

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Ease of doing business index

Country Last Previous
Singapore 2 2
South Korea 5 5
United States 6 8
United Kingdom 8 9
Australia 14 18
Germany 22 24
Canada 23 22
Russia 28 31
Japan 29 39
Spain 30 30
China 31 46
France 32 32
Turkey 33 43
Switzerland 36 38
Netherlands 42 36
Italy 58 51
Mexico 60 54
Saudi Arabia 62 92
India 63 77
Indonesia 73 73
South Africa 84 82
Brazil 124 109
Argentina 126 119

Source : Trading Economics



Courtesy: The EPOCH Times

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