What makes India an attractive destination for foreign company registration?
Foreign company registration in India
Every year,
thousands of multinational corporations
set up their business in India since over the years; India has become
one of the most sought after destination for doing business. It is 7th
largest economies in the world and also one of the most developing economies of
the world.
Well, there are
many factors which have encouraged the recent surge in foreign
company registration in India.
In this write up, we will touch base upon some of the
factors which have resulted in more and more foreign company registration in India in
recent years.
a)
World’s largest
democracy
India is the world’s biggest democracy which
guarantees a stable political environment and an friendly business atmosphere
with proper law and order in place where trade and business can flourish freely
without any fear, unlike other forms of governance where instability may creeps
on every now and then or where globalized trade is not possible without
government intervention.
b)
Large middle class
consumer base
Another
advantage of India is that she is one of the biggest consumer markets in the
world with approx. 550 Million consumer bases with strong purchasing power.
These attract global companies for doing trade with India and sell their goods
and services in India. This has resulted in almost all the fortune 500
companies have set up their businesses in India in one form or the other. Out
of the various options, available for business
set up in India, subsidiary
company registration is one of the most popular and preferable mode of entity
registration in India.
c)
Second largest English
speaking youth
India has
focused a lot on her education system in last 40-50 years as a result of which
India is home to approx. 20 Million English speaking youth, which is second
largest in the world. This provides an advantage while communicating with the
global audience. Foreign companies found it convenient to speak with local
Indians in English which facilitates doing business in India.
d) Availability of high
class skilled and unskilled labor at lower cost
India has huge
manpower resources both unskilled, skilled as well as highly skilled labor.
Further, the cost of manpower resources in India is comparatively very less as
compared to the western world. Although Indian labor laws are not quite labor
friendly, still cheap labor is a major advantage.
e)
Pioneer in Information
technology, software development and other sectors
When it comes to
Information Technology, India is pioneer in the same. It is world’s largest
offshoring destination for IT companies across the globe. The estimated revenue
from this sector is approx. USD 150 billion every year. Further, this sector
contributes to approx. 45% of India’s overall export.
India is global
digital capabilities hub with 75% of global digital talent within the country.
Largest global outsourcing industry in Service Sector. Approximate share of
India’s IT industry would be approx. 10% of India’s GDP by year 2025
Thus, from the
foregoing, it may be concluded that above are some of the factors which has
contributed in attracting foreign investment in India and as a result of which,
more and more multinationals have opted for foreign
company registration in India since
India and China both, have tremendous potential and opportunity to change the
economic landscape of the world in next 10-15 years.
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