Many companies are looking to enter the fast-growing economies of Asia but have found it difficult apart from the mainstays of Singapore and Hong Kong. India is bucking that trend and is welcoming new businesses and industries not just to get a foothold in the market but to flourish. This has been achieved through many different factors that when combined have made India one of the leading destinations for big business. We have looked at a few of the critical elements driving businesses forward across India and beyond.
Government Role
India is the largest real democracy in the world, and the government has taken steps over the past few years to make it easier for businesses to enter and operate in the marketplace. Many restrictions have been lifted in the financial sector, which means money is easier to obtain to help build companies from the ground up. Foreign companies can now start a business in India with no Indian ownership. The government has taken a step back in interfering with international operators in the country, and this makes it a friendly place to generate funds for a start-up business and keep it simple for organizations to open offices to supply the demand for their goods and services.
It Is a Big Country
India is a vast country and has over five hundred million people in the working age bracket. There has been a drive away from agriculture employment to working in the cities, and this leads to higher wages and higher demand for goods and services. It is estimated that India will have sixty-nine cities with populations above one million people; these are big numbers that would entice any company to move or start an operation in the country. The average age of workers in India is significantly lower than the US, Europe, and Japan, the benefit to employers is they are more likely to keep their employees for longer which helps them maintain a highly skilled and capable workforce.
Real Estate and Infrastructure
In western countries we often see businesses set up shop away from the central business districts as property prices can be extortionate and the aging infrastructures are unable to cope with the high volumes of commuters needed to keep a business afloat. It is perhaps a bonus that India’s development trend has been held back until the last few decades as they have a clean slate from which to plan and execute infrastructure development, even in business districts of major cities. Office rental is more affordable in comparison to other developed nations, and the statistics show that there has been a dramatic increase in co-working spaces leasing between 2017 and 2018. These are significant numbers, and this upward trend is set to continue.
Available Talent
Information technology has long been what Indian companies are known for throughout the globe, and they are home to some of the largest IT and software companies which have made the country attractive to foreign IT firms to leverage this talent. The recent changes we have seen demonstrate that many more sectors are now emerging to become industrial powerhouses in the manufacturing, banking, finance, insurance, and service industries. The high standard of education in India’s major cities across the country has led to a considerable amount of talent on offer, and many of these are people below the age of thirty and have the drive and ambition to train and educate themselves to help these emerging industries flourish throughout the country. Recent data has shown that rental leases are now being taken up by these sectors, and this is unlikely to slow down any time soon.
Forward Thinkers
The average Indian worker is no longer happy to earn an hourly wage, and they are looking at fresh ideas for start-up businesses leveraging new technology and the vast amounts of goods and services needed to keep a country afloat. Many global brands have been investing heavily in Indian start-ups in recent years including Alibaba, PayPal and Visa which led to there being 637 unique start-ups in 2018. The new businesses emerging cover a range of sectors like technology, retail, and finance. This forward strategic thinking along with the new breed of worker will continue to increase demand for Indian goods and services not just nationwide, but throughout Asia and the rest of the world. With world-class education generating more free thinkers and visionaries the steep curve of new start-ups will continue to rise, and this makes it an excellent place for business as well as the people of India.
Not only does the country position itself as a significant player in the economic boom of Asia, but it also has some fantastic bonuses for workers looking to move to start their business. The culture is very understanding and has excellent accommodation, street food, and nightlife to entice expatriate workers, coupled with the low cost of living and high wages available means any enterprise would want to have a foothold in this thriving, forward-thinking economy.
