India has seen a systematic transition from being a closed to becoming an open economy since the beginning of economic reforms in the country in 1991. These reforms have had a far-reaching impact and have unleashed its enormous growth potential. Today, the Indian economy is characterized by a liberalized foreign investment and trade policy, where large roles are being played by the private sector and deregulation. India has one of the best performing economies in the world: continually growing, with an annual growth rate of 8.5% over the past 5 years. During the current global economic crisis, India was one of the few countries to sustain a positive economic growth, reflecting its robust and stable financial market. The liberalized market system encourages foreign investment and makes India a promising market for international companies. Considering the economic prosperity, as well as cheap resources, an attractive labour force, political stability and promising sectors, investment in India forms a great business opportunity.

Emerging market

India has emerged as a major global market, with the World Bank and IMF projecting that during the next decade India will likely sustain its economic growth, and become one of the top two or three leading economies in the world. Increasing urbanization and modern technology have brought about a remarkable change in the lifestyles and consumption patterns in India. Private domestic consumption accounts for more the 65% of the country’s GDP and is one of the key factors driving overseas investment in the country. India ranks third amongst the most attractive destinations for foreign direct investment in the world. . Indian markets have significant potential and offer prospects of high profitability and a favourable regulatory regime for pursuing investors. Furthermore, India has a robust credit market with a wide range of financial institutions including commercial banks, regional rural banks, cooperative banks and NBFCs.

Favourable labour force

India has a low cost but highly skilled labour force, which makes the market attractive for foreign investors, especially labour intensive industries. Its highly-skilled labour force is attributed to the well-established education system in India, which has the largest school-age population in the world. Indians are known for their entrepreneurial abilities and their willingness to learn, adapt, and integrate into the global business system. India has a growing middle class of over 200 million people, who have the requisite purchasing power. With 1.21 billion inhabitants, India offers a growing vibrant market coupled with one of the youngest populations in the world.