Why India

INTRODUCTION

India possesses the fastest growing economies in the entire world and the economy is expected to grow at a constant rate during the next few decades. Therefore, the country India is exceedingly attractive for doing business as well as for investing. Certain factors making India an investment hub are as-

  • Growth of the domestic consumption due to the development of the middle class and advancement of the poor
  • Consistent evolvement of the investor friendly policy of the Indian Government
  • Cost of production being less due to the lower labour rates
  • Skilled manpower being available in abundance
  • Natural resources being ample
  • Infrastructural improvement being enormously emphasised by the Government
  • The markets of South East Asia, Middle East and also Europe being close to India.

SOCIO ECONOMIC STRUCTURE

India’s middle class is excessively expanding providing a great opportunity for the investment of the foreign products and services. As per the report of McKinsey 2010, if the growth trend of India remains consistent, over the next two decades the average household incomes will triple. This tremendous growth will make India, a country with the world’s fifth largest consumer economy by 2025.As per the report of a survey conducted by National Sample Survey Organization (NSSO); there has been immense decline in the percentage of people living below the poverty line. From 1993-94 to 2004-2005 the decline has been from 36% to 28%.

ECONOMIC STRUCTURE

In the terminology of the purchase power parity, India possesses third largest economy in the world. Removal of the imposed controls on various systems has stimulated the domestic and foreign investment. Many economic reforms have brought this transformation. India’s long standing institutions provide a secure and transparent environment for the foreign investment. This is a repercussion of the liberalization program, unleashing huge potential of the Indian economy. The existence of a firm legal system responsible for an appropriate accountability, free and an active press and English language to be the principal language for doing business are certain essential features foreign investors enjoy in the contemporary business’s environment in India. India’s qualified and skilled manpower make India an Ideal country for sourcing production. India undoubtedly has a vast domestic market for export too. In fact, India’s 75% of the GDP has been contributed by the private sector. The DE regularization of the economy has resulted in the investment of enormous foreign firms. Also, domestic industry’s global focus has enhanced as competitiveness as well as the growth have increased in the Indian firms. Today, India provides an opportunity for the foreign investment being one of the most developing markets in the world.

In India foreign investment is excessive because the GDP of India has a consistent growth rate of over 6%

  • Foreign investment is the third largest in India, after U.S.A and Japan
  • Indian markets are one of the most transparent markets in the entire world.
  • AS per the prediction of Goldman Sachs, the Indian economy will be the third largest in the world by 2050.
  • Atomic Energy’s Production is exclusively owned by the state
  • Railway transportation is the responsibility of the state. In mining and defence industry, the government is keen on granting permission for the investment of the private sector

GOVERNANCE

India is a secular as well as a democratic country having federal form of the government, following a pattern of the British parliamentary system. India has seven union territories controlled by the central government. On the basis of the linguistics, the federative states are divided into 28. The capital of India is New Delhi. Though the centre as well as the state has a different government yet India provides a single citizenship and a universal adult franchise. The highest court in India is the Supreme Court, followed by a high court for each state. The district courts are under the judicial and administrative control of the high courts. India’s judiciary is independent of the parliamentary system and is self-sufficient in it. Though the national language of India is Hindi yet the language followed in the supreme and the high court is English.

THE INFRASTRUCTURE

  1. Road -India’s road network is the second largest in the world comprising of 65,589 KM of highways.
  2. Rail – India’s rail route being the second largest in Asia is 63,028 KM long and has 222,147 freight wagons.
  3. Ports – India possesses 13 major ports and 187 minor/intermediate ports along the coast line. More than 90% handling of India’s international trade is being done by the ports.
  4. Airports – There are 125 Airports and 11 International Airports in India.
  5. SEZs -For attracting the foreign investment, a policy, the special economic zones, was announced by the Indian government in April 2000. India has about 133 special economic zones.

LOCATIONAL ADVANTAGE

India is the seventh largest country in the world and the second most populated country. Being located in the Southern Peninsula of the Asian continent, the Indian sub-continent is enormously different from the rest of the Asia. The beautiful Himalayas lie on the North and slant into the large and fertile Indo Gigantic plains.Vindhya ranges lie in between The Deccan Peninsula and the northern plains.

INDIA WORLD'S BEST OUTSOURCING HUB

Since foreign investors found Indian IT organizations to be exceedingly successful therefore, several other countries were also explored for the offshore outsourcing. However, the feedback has marked India’s delivery to be the best sought for the global sourcing.  Since enormous potential is yet to be trapped, emerging locations would grow, expanding the global sourcing phenomenon. Lion’s share of IT Services market is still enjoyed by India.

KNOWLEDGEABLE PROFESSIONALS IN INDIA

India is renowned for providing manpower for any type of offshoring activity. India’s possession of excellence in IT is because of the premier educational institutions. The success in BPO is because of enormous output of qualified graduates. Also, English language capabilities contribute to the achievement of the BPO’s. Two fundamental factors are responsible for the growth of employment in India

A favourable demographic profile –India’s demographic profile is enormously favourable. More than half of India’s population is below the age of 25 and almost 60 percent of India’s population is between the ages 15-59.Countries like Japan, US and China have population with comparatively higher dependency ratios.

A large and premier academic infrastructure – The data released by the Department of Secondary and Higher Education, Ministry of Human Resource Development, and Government of India reveals-

  • 409 institutes of higher education were prevalent in India by 2008-2009. India had 25,990 colleges and 1742 polytechnics.

Also, proficiency in English is immense because of English being a medium of instruction in the Indian education system.