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Top seven changes in India’s business environment


By the end of 2015, India is set to emerge as the fastest-growing economy in the world, even ahead of China, as per a report by The World Bank. The GDP of the country is expected to grow at a rate of 7.5 per cent during the current year, prompting many prominent global companies to create a niche in this emerging market. Further, the Government is making several policy announcements and changes to facilitate ease of doing business in India.


Let’s find out what is changing in the business environment of India

Essentials of the 3Ds – Democracy, Demography and Demand

Despite a diverse demography, India’s democratic system has been integral for the progress in the country, helping bind its 65 per cent young population with the India growth story. With a population base of more than 1.25 billion, stable parliamentary system, technological advancement, and quality resources at competitive price, India has over the years emerged as a preferred investment destination for manufacturers and service providers alike. In the recent past, the Government has also been playing a crucial role in highlighting the above advantages – the essential Ds – Democracy, Demography and Demand – in the global arena, inviting foreign companies to set shop in India.

Advantage manufacturing – Make in India

Taking the growth story forward, India is being projected as a manufacturing hub through the #Make in India campaign, with the Government promising to provide a conducive environment for investors. Panels have been formed to help fast-track investment proposals, overcome bottlenecks that obstruct the efforts for investing in India and provide consistent efforts in creating investor-friendly environment. It is expected that the manufacturing sector in the country could reach USD 1 trillion by 2025, with the sector accounting for around 25 per cent of the GDP and creating 90 million domestic jobs by that period.[1].

It’s a go – Easy to set shop

Setting up operations in India is now becoming far more flexible, thanks to the policy changes initiated by the Government. With most of the information and submission options available online, India is providing easier and flexible programs for investors ready to ship their operations in the country. One of the myths, that one needs an Indian partner to root themselves in India, is a fallacy of the past, as major companies are now setting up their hubs in the country on their own.

Easing policy guidelines

The Department of Industrial Policy and Promotion (DIPP) has been focused at improving policies and guidelines for doing business in India. The emphasis has been mainly to rationalise and simplify the existing rules, along with introducing technology for making governance more effective and efficient. A prominent change had been online availability of applying for Industrial License and Industrial Entrepreneur Memorandum 24*7[2].

Disintegrating red tapism

The Government has progressed on environmental clearances for more than 300 projects and has made sure that it would be red carpet in India rather than red tapism. Also committed to fast-track reform process, Government has been able to take ordinance route for increasing foreign investment limit in various sectors such as insurance.

Developing infrastructure – Smart cities and industrial corridors

Being an emerging economy, major emphasis is given on developing infrastructure in the country. With the Government announcing an outlay of around USD 8 billion for creating 100 smart cities[3], many international companies may express interest to collaborate with Indian companies and the Government to build infrastructure, transportation, renewable energy and other Greenfield projects in the country. With regards to industrial corridors, Delhi Mumbai Industrial Corridor, Ahmedabad Dholera Special Investment Region, Chennai Bangalore Industrial Corridor, Bengaluru Mumbai Economic Corridor and Vizag Chennai Industrial Corridor are now showing great progress.

Offering strategic locations for doing business in India

Along with the major industrial cities and towns, India is rapidly developing various strategic locations for companies to establish their base in the country. With the availability of multiple clusters for centres of excellence for manufacturing, engineering & design, and skilled talent at competitive cost, India is at an advantageous position for establishing manufacturing facilities, engineering design and development centres as well as for sourcing from the country. Further, the country is emerging as one of the best global locations for talent arbitrage, as foreign companies are hiring Indians for top leadership positions for their global operations.



Planning to start your business in India or expanding your operations in this rapidly emerging country? Take advantage of the various policy changes and Government initiatives, create the right footprints and impressions with your target audience and generate desired ROI by taking informed investment decisions with the guidance of an India entry specialist who can offer end-to-end consulting and implementation support.


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