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Doing Business in India

Last updated: Oct, 2012

The Indian economy continues to grow at a good pace and holds a strong position on the global map. The country’s gross domestic product (GDP) has been growing at an average rate of 8.5 per cent for the last five years.

India’s economy is amongst the largest in the world on the basis of Purchasing Power Parity. It is today one of the most attractive destinations for business and investment opportunities with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. In FY 2011-12, the country attracted foreign direct investment (FDI) of around US$ 46.8 billion in various sectors.

The economy of India also boasts a robust financial system and deep capital markets. India’s demographic are very attractive with approximately 65 per cent of the total population falling in the age group of 15 to 64 years. A comparatively stable Government, an open democratic set-up, and a strong and reliable judiciary system, add further advantage to the Indian economy. The country’s strong fundamentals such as a growing middle class population, cost competitiveness and strong domestic consumption has made it a preferred destination for MNCs from across the world.

Indian economy has strong fundamentals and is host to several eminent global corporate giants that are leaders in their respective fields. According to the Global Competitive Report 2011-12, India ranks at 56 among 142 countries. The country ranks higher than many countries in key parameters such as market size (3rd) and innovation (38th). It also has a sound financial market, which ranks 21st in the world.

According to UNCTAD’s World Investment Prospects Survey 2012–2014, India is the third-most attractive destination for FDI (after China and the US) in the world. Indian markets have significant potential and offer prospects of high profitability and a favorable regulatory regime for investors.

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