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 government is working to improve the business environment. **Good choice for most business sectors, especially consumer sales, 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

(-) Complex bureaucracy, regulations, and politics
(-) Pollution and poor transportation infrastructure
(-) Diverse regional markets require companies to pursue a state-by-state strategy

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 foreign companies, but popular resistance slows change

India offers significant opportunities for U.S. companies, and the potential to increase bilateral trade is enormous. Indian conglomerates are generally equal in sophistication and prominence to their international counterparts.

US International Trade Administration, 2022

Country Facts:

Population:

1.39 Billion, 1% growth in 2020

GDP:

$3.29 trillion USD; 8.4% 2021 growth following -7.3% in 2020

GNI per capita:

E-Commerce:

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

$80 billion in 2021; growing at 27%

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

#63/190

#80/180

49%

928 M

$1750 USD

#50/100

25% 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:

$1,100 USD

Internet penetration:

45% (South Asia 42%)

Shop online:

76.7%

Mobile ownership:

79.0%

Primary messaging:

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. We can assist companies across multiple sectors and help find trusted local partners.