India undoubtedly is one of the rapidly growing economies. Owing to its conducive economic ecosystem and infrastructure, India is the best country for business expansion. Lately, business expansion in India has become a breeze for those looking for a perfect environment for business growth- thanks to the futuristic policies of the Indian government and increasing foreign investments.
India’s foreign exchange reserves were estimated at a whopping $448.59 billion at the end of 2022. Besides, registering a 5% GDP growth in 2019-20 also made India a hot favorite.
The Indian economy is far more resilient than the rest of the world, and that’s where this trust stems. India’s growth is projected to be far better than the world’s major economies, such as the US, the EU, and China. In July 2022, IMF said that India is estimated to grow at 7.4% in the current FY. More than a third of the global economy is likely to slump in 2023 as the US is estimated to grow at 1%, while Germany, Russia, and Italy are forecasted to experience regrowth.
Let’s take a quick look at a few reasons why you should consider expanding your business in India.
1. Business-friendly regulations and governance
If you wish to expand your company in India, it is indeed a great idea.
The Indian government has rolled out a myriad of policies and schemes specifically designed to attract foreign business to India. The Foreign Direct Investment Reforms in 2015 turned out to be path-breaking in more than one way. On the one hand, it allowed foreign investors to take control of established businesses in India and, on the other, provided a favorable environment to set up an entirely new enterprise which is also known as ‘Greenfield FDI.’
Make in India, Startup India, and Skill Development are some of the major initiatives taken by the Indian government in recent years. Besides, tax breaks for businesses in selected sectors and the relaxation of norms have been no less than icing on the cake.
2. Low labor costs and a talented workforce
India has remained an outsourcing favorite for decades, and that’s primarily due to access to a talented workforce and low labor costs. Whether it is network providers, tech companies, or energy production companies, India is preferred over other places in the world due to these reasons. Besides, doing business in India becomes easy due to low registration costs and business-friendly tax schemes.
India is growth-focused, and its promising forecasts vouch for that. No wonder an increasing number of investors are turning to India for business expansion.
3. Ease of doing business
Another major reason to expand your company in India is the ease of doing business. The last 10 years have been significant for India as it has improved its ranking in this aspect. India stood at 139 in 2010 in global rankings and jumped to 69 in 2019.
4. Diversity makes India a favorable place
India’s diversity makes it a perfect choice for startups. It is estimated to see enormous growth in the next decade, which lays the perfect foundation for startups willing to set up their business in India.
India is booming at the moment and all poised to become world leaders in the next 10 years or so. It offers a sustainable environment that allows new and existing enterprises to do better business.
5. Low setup and maintenance costs
Setup and maintenance costs are relatively low to moderate in India as compared to the developed nations, which is a key reason to expand your company in India.
Conclusion
India has come a long way and has taken center stage in the global economy. It has a diverse & vast market that offers access to ultra-modern infrastructure and a talented workforce. Enterprises looking for business expansion in India know this very well, and if you are also a startup or an established business looking to expand your company in India, this is indeed the right time.
Business expansion in India requires an enormous amount of paperwork. You need the expertise and guidance of company formation and registration experts who guide you through the whole process. If you have any questions about business expansion in India, FinAccountants is just a click away.
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