Why Foreign Corporate Should Now Invest in India


India, which is the second-largest developing country in the world, is poised to become the third-largest economy in the world by 2020. The critical ingredient that will help India’s economy grow will be real estate. International investors are being prevented from entering India by concerns such as high inflation, currency depreciation, and high trade deficit.
These obstacles aside, India’s vast offering to international corporations is made possible by its 65% working-age population of 1.3 billion. Talent and the remaining 65% of the total population of 1.3bn. In India, the manufacturing and service sectors have experienced 7.7% and 9.6% growth rates in the past ten years of a healthy economy. The potential growth opportunities India offers are also evident by the five 1/2-fold increase in the stock market index.

2nd highest number of people, 65% of whom are working age. Increasing PCI, low wages, and low penetration by organized retail mean that improving lifestyles and the rupee depreciation, as well as low GDP growth, high inflation, and increasing deficit, are all being ignored. India is hoping to increase foreign participation and policy clarity with the NDA government headed by Shri Narendra Modi.

Top 5 Things in India That Attracted Foreign Corporates in the Past

The new India

India’s second-largest population has enormous potential to create new startups and provide growth opportunities for foreign corporations in the Indian consumer market. Increased incomes, a change in lifestyle, increased spending, and luxury attractions, as well as the growing urbanization, are key factors that provide India with a large market and enormous growth potential.

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Talent acquisition is easy and affordable.

It is a massive challenge for India to provide employment opportunities to the young people who are leaving the institutions. India’s high level of competition and high unemployment are two primary reasons for the availability of affordable talent. Indians are able to do any job, no matter how difficult or challenging.

Employers have a lot to choose from, thanks to low wages in the manufacturing sector and increased labor mobility.

Low-cost real estate

Any Indian will answer you if you ask him about Indian real estate prices. He won’t know much about international real estate prices. Although the cost of real estate has increased significantly over the past decade, it is still much cheaper than in other developed countries. Bangalore is India’s fastest-growing office market, and office space can be rented at a cost that is about 85% lower than Tokyo. Bangalore ranked 21st on the list of most expensive cities for office rentals, while Delhi and Mumbai ranked 10 and 11.

The time zone that is almost at the center

It would be convenient for companies to deliver services to multiple regions from one location. This advantage is due to India’s geographical location. It allows for lower costs of operations, management, and delivery. You can deliver services in Singapore or Hong Kong by working late into the evening to serve clients in the UK and other European countries.

India has become an organized country.

BSE (Bombay Stock Exchange) has seen a rise in the number of listed companies. This is a sign that Indian industry is becoming more organized. Companies in a variety of verticals, including healthcare, real estate, and manufacturing, as well as service IT, hospitality, and retail, have moved from an unorganized space to an organized one. This transition will likely accelerate in the next ten years.

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According to the JLL Transparency Index 2014, transparency levels in investment domains are also increasing. This index is currently being finalized. The index’s preliminary findings show that transparency has improved more than the Asia Pacific average.

The more convincing facts are that IBM, which first entered India in 2003, has grown its employment in India 16 times since 2003. Its employment strength increased from 9,000 in 2003 to 150,000 by 2014. This represents 33% of the total IBM workforce worldwide. Accenture also increased its workforce by more than twice, from 35,000 employees in 2007 to 80,000 in 2014. Ericsson India’s employee strength of approximately 18,000 represents 16% of the company’s global workforce. In India, several UK- and German-based financial institutions have added significant numbers of employees over the past few years to support their offshoring and back-office operations. Today, almost half of India’s office supply is occupied by companies based in the USA. Europe-based corporations occupy 14%.

The Union Budget 2014, announced on 10 July, has indicated that many new infrastructure projects are in India. India is an ideal investment destination for foreign corporations, as evidenced by the availability of office space stock, office absorption rate and supply rate, better transport infrastructure (national highways expressways flyovers, metro trains, national highways), well-placed hospitality industry, growth of foreign travelers, industrial corridors development and improvements in physical and social infrastructure.