As the world is aware that India is one of the fast-growing economies of the world today. It is expected to cross the US$ 5 trillion economies by 2022. The government initiative like the digitalized economy, make in India, Ease of Doing business in India is expected to induce investment in India. The induce investment helps the country to grow more rapidly and able to achieve its objective to the world’s successful economies. India has a large population that has a large consumption base. India’s Approx. GDP calculated is Rs. 145.65 lakh crore with a growth rate of Approx. 4.2 percentage over the last decade.
- Availability of Raw material:
Raw materials are available in an adequate percentage. India’s rapidly growing economy, strategic location, and relative size in the region bring in India into the advantageous side. Indians have become drivers of global growth and prosperity. There are so many resources available but which is underutilized need to be properly utilized. In India, its huge geographical area and condition provide its compatible to manufacture base likewise, china.
- Cheap labor:
India is the world’s second-largest populated country of the world hence, it provides the population with a higher unemployment rate. People here work for even negligible prices. There is the easy availability of labor who even, work for daily wages and double shifts. India provides easily and cheap manufacturing base, which attracts the manufacturing units to India. India is a developing country and its vastly growing economies of the world. According to the united population fund report, India presently has the world’s largest youth population. which provides great manpower resources to be utilized for the better.
- Tax system:
After Independence, the government has taken so many initiatives to better the tax system in the country and steps are being taken in the development scenario. The recent goods and service tax initiative has launched by the government of India. The main purpose of GST is one tax one nation, which simplified the taxation administration as well as the tax system of the country, there will be no double or overburden of taxes. It attracts foreign investment in India as its simplified tax system enables the investor to freely and less ambiguous ways to enter the countries and start working here more easily and transparently. Beyond, the introduction of GST various steps is being taken like new bills, a simplified process of investment of India, different trade treaties, double taxation agreements with the countries, RBI rules regulations under FEMA are also simplified and for dispute resolution mechanism various bills have been presented in the parliament like vivad se vishwas bill, etc. to promote and simplified the tax system for the subjects.
- India is the country of the brain;
According to the ‘All India Management Association & the Boston consulting group’, India has the third-largest countries of the world of great scientists and technicians. According to the ‘British Council’ by 2020 India has the largest suppliers of university graduates. India’s facing uneducated unemployment, which means we have skills, knowledge, and the brain but do not have work for people. The investment in India makes it possible for the scope of work and growth of so many unemployed graduates. Hence, it provides a better deal of Investment in India.
- Huge domestic market;
India provides the largest domestic market in the world. There is rising affluence of the biggest driver of rapidly increasing growth of consumption. According to Goldman Sachs Group, India will be led by 129 million urban mass consumers and private consumption will be four times by 2025.
- India Infrastructure;
The Indian government has taken the initiative to improve and enhance the infrastructure in the country had done several policy changes to reduce discriminatory bias against foreign investors and increase the investment capital in the Infrastructure of the country. There is also scheme sanctioned for new roads built over the states nearly 83,677 km in the next 4 years. India has the major infrastructure which is required for growth and enhances the pace of development like electricity, roads, transport, communication, energy, education, and health. India has the second-largest road networks in the world. India ranks 4th in wind power generation, fifth in solar power, and renewable power installed capacity. India had increased its portion of expenditure for the improvement of infrastructure such as bridges, schools, power plants, roads etc.
- Connects the East to the western world;
India is enjoying the strategic demographic location as it is situated in the middle of Asia and connects both worlds
- Global Competitiveness
The rising global competitiveness enhances the credibility and progress rate of the country. India is developing with great speed by 2020 it becomes the largest growing economies of the world.
By 2019 India is at 63rd place of ‘world’s Ease of Doing Business Ranking 2020’. According to the world economic forum, India ranks at the 68th position of the global competitive index.
- Equity market:
According to the Asian development bank report, there has been a rapidly increasing equity market in India, with an increasing market capitalization in the last decade, which places India at the third-largest capital equity market with US$ 600 Billion. The foreign Direct Investment equity inflow reached new heights with US$ 283.73 billion.
- Liberalize the trade barriers;
India is in a phase of development and shares a major share of India’s import and export with the world. India removes various trade barriers, reduce tariff quotas, reduce the customs duty to promote import and export with the countries, and also reduce various licensing regulation and ease in filing and compliance of the law.
- Stringent IPR laws;
India has stringent laws and regulations regarding the intellectual property rights of the inventor. India is most concerned about the legal rights of the investors and has grant patent, trademark, and copyrights like legal rights. It focuses on the consumer-centric approaches as India is the country of population and hence, demand. It focuses on providing people every possible civil and legal rights.
- High savings;
with the Jana Dhana scheme of the government, there has been a rapid increase in a bank account with an increase in savings. And the saving rate is also high as compared with other developing nations.
- GDP growth rate;
There is rapid GDP growth with a growth rate of 8.4 percentage in last years. Which is now to be estimated to cross 9 percentage in upcoming years. Which is more than many Asian countries.
- Quality of Investment market;
India has a sound financial market in the world. The FPI/FII is the biggest key driver in the financial market in India and has invested Rs 12.30 lakh crore in a financial year of 19-20.
- Stable federal structure;
There is an easy, accountable, and responsible federal government structure of the country. Which promote harmonized relation with the trading partners. The making of laws and implementation is more easily and accountable.
- Tech start-up boom;
There is a reason for the tech boom is that India is investing in tech infrastructure. They are creating a paperless, presence less, cashless services. As India has the main advantages of being populated, educated young talent and acceptability of new technology helps to achieve its goal of implementation of digitalized and simplified economy. There is rapidly increasing computer technology. Every year India generates many computer and technology experts.