Starting and running a business in India is challenging. But there’s a reason more and more U.S. offices—as well as other businesses across the globe—are setting up shop in New Delhi, Bangladesh, and other Indian regions.
So, what are the benefits and drawbacks of making such a move, and which types of businesses are thriving in India’s market?
India has a lot to offer in terms of manufacturing, natural resources, and the importing and exporting of goods. All this leads to a healthy market and strong economy that lends itself to a thriving business sector.
Growing economy aside, here are just a few more reasons why India is such an attractive business destination:
- Specialization – India’s workforce is extremely experienced in almost all facets of business. Because education and certification are such prized assets in the Indian market, local employee recruitment is impressive. And because India has the desire to compete in the world market, the pool of qualified candidates is incredibly diverse.
- Dedication – When an employee is dedicated and hardworking, it makes running a business that much easier. With that in mind, a strong and reliable work ethic is part of the Indian culture. The Indian workforce is willing, trained, and prepared to go the extra mile by working overtime and around the clock to ensure any business runs smoothly.
- Accepting – The Indian market as well as its workforce is accepting of new business ideas and open to innovation. Because India takes stock in its market, it’ll do whatever it takes to see new businesses form and grow. By adapting to the way new and unfamiliar industries are run, India is always expanding and strengthening its appeal as a worldwide business destination.
Unfortunately, there is always a little bad with the good, and India’s downfall comes in the form of complex regulatory systems and complicated business startup procedures.
Some other reasons why doing business in India might raise some red flags:
- Tax Rates – Taxes are a way of life no matter where a business decides to take its offices, but India’s tax rates are particularly high. Foreign corporations are subject to a 40% tax rate with an additional 1% to 5% wealth tax increase.
- Formation – In order for company formation to take place, a minimum of two shareholders and two company directors must be Indian. That’s regardless of where the company hails from.
- Start-up Capital – Any business opening offices in India is required to pay around $3,000 in startup capital to the Indian government. And if the business wants to use India or Hindu in its name, it’s an additional $10,000.
With the good and bad taken into account, which businesses are currently thriving in India? Information technologies, web hosting/outsourcing, and online reputation management services prosper in India’s market
And with all the talk about eco-friendly products, it looks like India is listening. Their green technology industry is growing every day as well as their production of quality consumer goods for the worldwide market.
So, for new businesses looking to open their offices in other lands, look no further than India.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including personal health and business markets across the world.