india flag

India Country Profile

Recommendations:

The world’s second most populous country boasts a youthful, largely English-speaking population, years of substantial economic growth, and the promise of further economic expansion. Structural issues remain, to include India’s famous bureaucracy, but the current government is working to improve the business environment.**Good choice for most business sectors, but can be challenging**

(+) Vast and growing base of middle class consumers
(+) Availability of educated, English-speaking professionals as well as numerous workers
(+) Tremendous potential for further growth

(-) Recently slowing GDP growth rates, exacerbated by pandemic
(-) Complex bureaucracy, taxes, and regulations
(-) Poor transportation infrastructure

Highlights:

– Decade of world-leading economic growth, but this had begun to slow even before COVID-19
– On track to be world’s most populous country, with growing middle class, entrepreneurial culture, and generally strong fundamentals
– Business environment is improving for both foreign and domestic companies

“With more than 1.2 billion people and the world’s third-largest economy in purchasing power parity terms, India’s recent growth has been a significant achievement. India has now emerged as a global player.”

World Bank, 2021

Country Facts:

Population:

1.39 Billion, 1% growth in 2020

GDP:

$3.05 trillion USD, 7.3% contraction in 2020 but IMF predicts 12.5% growth in 2021

GNI per capita:

$2,020 USD, 4.9% inflation, lower middle-income country

Industries:

IT, pharmaceuticals, manufacturing (textiles, chemicals, cement, steel, automobiles), mining, petroleum, agriculture

Tourism:

Investment:

Major industry; comprises 9.2% of GDP & employs 42 million

Multiple government programs to encourage foreign investment, to include tax incentives and eased restrictions; trending positive

#63/190

#80/180

49%

916 M

$4k USD

#34/100

24% NYC Prices

Ease of Doing Business

Corruption Perceptions Index

Human Capital Index

Working Age Population

Household Expenditure Per Capita

English Language Capabilities

Cost of Living Plus Rent Index

Marketing:

Per capita expenditure:

$8,269 USD
Internet penetration:

45% (South Asia 42%)

Shop online:

4.3%

Mobile ownership:

96.4%

Primary messaging:

Whatsapp

Primary website:

Facebook

Average Labor:

Infrastructure:

Opening a Business:

Relevant Laws:

Multiple laws, to include New Companies Act (2013), Companies Incorporation Rules (2014, Foreign Exchange Management Regulations (2017)

Time to Incorporate:

2-3 weeks to incorporate (in Mumbai) and complete necessary paperwork depending on type of incorporation

Fees to Incorporate:

Basic fees range from less than $100 to $500 depending on type of company
Paid-in Capital:
No minimum paid-in capital
Remittance Taxes:

Complex rules, but plan on 20 percent tax for buyback method of remitting profits

Restrictions:

At least one Indian citizen as a director and local address normally required; restrictions on foreign investment in certain sectors, including agriculture, real estate, nuclear energy, tobacco, and lotteries

BBA Services:

BBA has staff in Mumbai, Delhi, and Kolkata, plus India experts living remotely in Singapore. BBA’s connections can solve most problems in India and/or help find trusted local partners.