UNDERSTANDING INDIAN MARKETS

With a dynamically growing economy and a total population of over 1.4 billion, India is one of the most attractive markets worldwide. The government ever increasing pursuit to ease doing business in India with initiatives like the liberalization of Foreign Direct Investment (FDI) policy, and the implementation of the Goods & Service Tax (GST), presents lucrative investment opportunities for foreign companies. 

Future capital spending of the government in the economy is expected to be supported by factors such as tax buoyancy, the streamlined tax system with low rates, a thorough assessment and rationalisation of the tariff structure, and the digitization of tax filing. In the medium run, increased capital spending on infrastructure and asset-building projects is set to increase growth multipliers, and with the revival in monsoon and the Kharif sowing, agriculture is also picking up momentum. The contact-based services sector has largely demonstrated promise to boost growth by unleashing the pent-up demand over the period of April-September 2022. The sector’s success is being captured by a number of HFIs (High-Frequency Indicators) that are performing well, indicating the beginnings of a comeback.

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

Having said that, India is a complex market and there are many factors that you need to consider – especially while setting up your business.  We answer common questions here by foreign companies about doing business in India, but if you don’t see your question answered, please write to us and we will try to answer it for you!