Market Entry & Expansion Experts

Massive Population

With a population of more than 1.4 billion people, India becomes a huge market for companies intending to set up in India. The foremost factor to consider while evaluating the advantages of starting a business in India is its population. India is the most populated country in the world overtaking China. With such a humongous people India gets a huge market base. A large population accompanied by a market without any borders and a skilled workforce are undoubtedly the major advantages to starting a business in India. India's young population and flourishing financial capacity act as a potential magnet for international organisations as well as foreign investors which makes it a favourable country to invest in. 

Sustainable Progress

India has now been recognised as an emerging and powerful economy in the world and is an integral member of the G20 intergovernmental forum. In 2023, India successfully hosted the G20 Summit for the first time which received great accolades from across the world. According to the Mckinsey Global Institute, 69 cities in India by 2025 will have about 1 million population individually. In addition to that, a trend has been observed that Indian youth is interested in making a move towards the urbane from the countryside which would mean a large population will join the middle and an upper-class-income group of the country. As an outcome, it shall automatically create the stipulation of business to support the livelihood. In the given scenario, companies entering India soon can take advantage of such favourable conditions. 

Low Operational Cost

Foreigners investing in India can relish the low operational cost as the cost of setting up a business which involves internet charges, phones, infrastructure and moreover the labour cost is comparatively low which makes investing in India engrossing and serviceable. The cost of incorporating a company in India is very nominal, i.e., the cost of incorporation/ registration of a private limited company may vary from INR 6,000/- to INR 30,000/- depending on the authorised share capital and the professional fees chargeable on the incorporating of the Company. In addition to the above, tax schemes in India are modest in comparison to other countries which makes it more reasonable and favours the cost-cutting process for running the business in India by the foreigners. 

Initiatives by the Indian Government

The Government of India has introduced a number of efficient schemes and policies in order to ease the flow of foreign investments. The ministries of various industries in India have made noticeable efforts to simplify the rules and regulations with respect to foreign investment in the country. Foreign Direct Investment (FDI) reforms were introduced which relaxed investment by a foreign entity/ foreigner in various sectors without obtaining prior approval from the government. This major positive change by the government has increased the scope of setting up business in India by investing in various sectors without obtaining prior approval.  India has a wide network of numerous technical and management institutions with the highest international standards supported by regional and bilateral free trade agreements. Furthermore, there are diverse business partners to conduct the business. Such institutions originate exceptional human resources. 

Young & Educated Population with Admirable Work Ethics

One of the major factors for starting a business in any market is employability. India currently harbours a labour force of around 530 million people, of which the majority of people fall under the age group of 18 – 40 years (Young Population). The young population is more efficient and offers longer years of serviceability and sustainability for any business. Another major advantage of starting a business in India as a foreigner is the strong base of well educated English-speaking population in the country. Approximately 125 million people in India speak fluent English and have good command over other Indian local languages, due to which there is the least amount of communication barrier which as a r esult makes it a convenient and attractive location for foreign entities to start up new businesses in India.  The work ethics followed in India needs no introduction. Indians are a blend of hardworking and loyal workforce with an undeniable eagerness to learn and a ‘never say no’ attitude which makes them an ideal workforce for exemplary performance. Business’s index leverages these opportunities and generate employment and improve productivity in the country. 

Exponential Rise in Disposable Personal Income

India's middle class's disposable personal income has been rapidly increasing. Disposable Personal Income in India increased to 297059026.70 INR Million in 2023 from 273364818.90 INR Million in 2022.  The number of households with disposable incomes of more than US $10,000 has also increased twentyfold in 25 years. Growing disposable incomes, along with the rise of the middle class, will make India a consumption powerhouse.   

The country’s affluent class is expected to nearly double to 100 million people within three years, according to Goldman Sachs Group Inc.  The world’s fifth-largest economy is tipped to become the third-biggest by 2027, according to the International Monetary Fund, with the country seeing rising spending power among its middle-class, benefiting firms with premium brands in leisure, jewelry, out-of-home food and healthcare, according to Goldman.  In 2024, the household disposable income in India is forecast to amount to US$3.16tn. In 2024, the household disposable income per capita in India is forecast to amount to US$26.97.