1 Aug 2011:
Liberalisation of the Indian regulatory framework has enhanced its attractiveness as a destination for foreign investors. This guide sets out some of the key issues that foreign investors should consider when establishing their operations in India.
Key aspects of doing business in India:
Growth
India is the world’s largest democracy and the second-fastest growing major economy.
Pro-business and stable government
India offers political stability that is vital to foreign investments. Government agencies, which have a pro-business attitude, work closely with the business sector to promote economic growth.
Extensive trade partners
Investors can leverage on India’s trade network with its regional and bilateral free trade agreements with many trading partners.
Increasing infrastructure and good living standards
A significant investment in infrastructure is taking place in India, particularly in the metropolitan areas. Coupled with this, India offers good living standards with a robust transport system, superior healthcare facilities and first-class entertainment centres.
Competitive tax system
India offers a very competitive tax regime and comprehensive network of Tax Treaties. Indian taxes would be further modified by the introduction of Direct Tax Code and Goods and Service Tax (expected to be introduced in April 2012).
Skilled workforce
India offers a highly-rated human capital base recognised for its skills, knowledge and talent.
Well-developed financial system
Its financial system is well regulated and offers a broad range of services. Businesses can also tap into its developed capital markets as an alternative source of financing.
Robust legal system
The legal and judicial system here is robust and efficient, thus, businesses can count on India’s rigorous enforcement of laws.
Ease of doing business
The procedures to set up a business are straightforward. Together with a set of streamlined reporting requirements, foreigninvestors can expect minimal compliance cost and bureaucracy in running a business in India.
Great work ethics
India has great work ethics and a very professional way of operating. Employees are hard working and willing to work on holidays/weekends if necessary.
Read the full Doing Business in India country guide
You can also see the Trade Connections for India on the home page or go to the HSBC India Site for more local information.