Staying competitive is a key consideration for any business leader. Expansion into India may already be in your business plan but if not, you might want to look at the opportunities.
India is the world’s largest democracy and an attractive place to invest. As the second most populous country in the world, with around 45% of the population aged between 20-40 years, it is a nation the size of a continent with a strong workforce.
India is making significant steps to attract international business to India. They have introduced updated company law and listing regulations to bring their requirements on par with other countries. The Government of India has also launched key initiatives such as ‘make in India’, ‘start-up India’, skills development, relaxation of norms and tax breaks for businesses in certain sectors. These changes have earned considerable appreciation across the country and significantly benefited business growth.
8 Reasons to consider Indian expansion
- Similar corporate governance and compliance requirements
As Indian businesses have expanded worldwide so corporate governance has developed leading to an increase in investor confidence in Indian businesses. The Indian Companies Act also has similar reporting structures to those in the UK.
- No language barrier
Alongside Hindi, English is one of the official languages of the Federal Government of India and English is used extensively in business.
- Large population of workers
Most of India’s population is of working age providing businesses a ready supply of workers.
- Low cost of labour
There is a huge pool of skilled manpower, professional managers and semi-skilled and unskilled labour available at a comparatively moderate cost compared to the rates in developed countries.
- Growing economy
As a developing nation the Indian market provides a very sustainable environment. The economy is also favourable to business as it remains stable and continues to grow.
- Cost effective
The cost of basic services such as electricity, rent etc are moderately priced compared to the developed nations.
- Ease of doing business
During the last decade India has significantly improved its ranking as a country in which doing business is relatively easy from a regulatory perspective. See the ease of doing business rankings in which India has moved from rated 139 in 2010 to 63 in 2019.
Diversity supports better decision making and India is a nation with a diverse population; identity, race and language.
In summary, India is fast becoming a hub for start-ups and is expected to see exponential growth in the next 10 years. By overlooking growth into India you could just be overlooking one of the most promising new markets of the decade to come.