With being one of fastest expanding economy in the world and having a rapidly expanding consumer class, analyst forecasts that India will be the fifth largest consumer market in 2025. And is currently ninth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). Which is a gold mine of opportunities for starting and growing business, in a very wide range of sectors. Addition to this having stable central govt, strong central bank, and almost steady economy makes it highly lucrative destination to do business.

But everything is not served on a silver tray, you need to give a lot of consideration to this move because it can easily go wrong and businesses can be compelled to incur grave losses.  Starting the right kind of presence can make a difference between success and wasted efforts in which most important part to consider is implementation of the business strategy. Foreign companies, before entering the Indian market should consider that.

The majority of the world’s leading developed nations are keen to have or expand their ties with India. Having 300 million people as middle class counts, comparable in size to the entire European Union’s market. It’s worth starting a business here as no other country offers a market as gigantic as India. Also, fast-developing spending habits of middle-class Indians, makes it a lucrative destination for investors over other major countries be it any country around the globe. With a 5,000 year heritage of welcoming foreigners to its shores, INDIA WELCOMES DIVERSITY.


Doing business in India has several advantages because of its development-friendly reforms. Indians central govt and central bank (RBI) works in such a way that they shield its market from any global disruption. For e.g. global economic slowdown has negligible impact on Indian market. Because of its several advantages, foreign businesses can clearly take advantage of what the Indian economy has to offer, in order to execute growth and expansion strategies.

  1. HUGE AND PROMISING MARKET- Analysts state that by 2025, 69 cities in India will have a population of over one million each. This is going to translate into a greater need for businesses to support livelihoods. Plus, unlike the early days, the people - the businessmen, the entrepreneurs in India are ready to take on big projects, and with boom in internet services, small start-ups which can find innovative solutions to problems. Further, the transition from the rural to the urban areas will mean that a greater portion of the population will join the middle-income strata. Such opportunities offered in India should be one of the key reasons to establish one’s venture in this country.
  2. GREAT LABOUR FORCE- With the world's second largest Labour force, of approximately 520 million people. India boasts a labor force majority of which is under 30 years of age. It is a huge pool of skilled manpower, professional managers and semiskilled and unskilled Labour available at a comparatively moderate cost, often just a fraction of the rates prevailing in developed countries. Businesses can leverage this opportunity by generating employment and increasing productivity. Further, the aspirations of the Indians working eight hour shifts six days a week. When working for organizations which require communication on a regular basis with people in countries such as the US or the UK, they will willingly work shifts around the clock to compensate for the time difference. This group of highly dedicated Indian workforce, willing to work long shifts over unusual hours, is a huge benefit for international organisations doing business in India.
  3. FAVOURABLE FDI POLICY-. With favorable FDI policies in place, Apart from few strategic sectors, every other sector of the economy has been opened for free flow of Foreign Direct Investment of up to 100 percent into private limited company or limited company that no longer requires the Central Government’s intervention. Which makes ours country FDI policy a top-notch and also reduces the overall cost of setting up a business in India.
  4. LOW COST OF DOING BUSINESS- As compare to UK, US and Singapore the cost of establishing business in India is very low. Whether it’s about basic amenities or it is investing in infrastructure, Labour, food, transportation, Internet, or even taxes. Everything is much more affordable.
  5. FRIENDLY BUSINESS ENVIRONMENT- In a bid to make the ease of doing business seamlessly, the government’s introduction starting from the Goods and Services Tax Bill to the Direct Taxes Code Bill, these bills are going to introduce transparency and uniformity in the Indian economy. Also the insolvency and bankruptcy code which review demonstrates the fact that country is best place to invest. These business-friendly laws make it easy for international players to actualize their plans of entering India.
  6. GOVERNMENT INITIATIVES- Under administration of Modi’s government, the business terrain has seen lots of improvements in the inflow of FDI. “STARTUP INDIA”, “DIGITAL INDIA”, “SMART CITIES”, as well as “SKILL INDIA”, are some of the initiatives targeted by governments towards business. Additionally, the Indian government’s MAKE IN INDIA initiative which focuses on 25 industrial sectors and aims at building best-in-class manufacturing infrastructure by enabling foreign investments, promoting innovation through skill development, and focusing on intellectual property protection.

Not considering expanding a business to India means ignoring one of the most promising (if not the most!) new markets of the decade to come. Because of its several advantages, foreign businesses can clearly take advantage of what the Indian economy has to offer, in order to execute growth and expansion strategies.

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