Arete Consultants

Why India

India is considered as a global friendly country as it believes in the philosophy of “Vasudhaiva Kutumbakam”, or world family, and this has guided the nation since Vedic times, where all the countries of the world are considered as one family.
India is one of the fasted growing economies of the world and is attracting huge FDI in the past several years. Many large companies from the developed countries have made up their manufacturing base in India to cater to not only the vast Indian market but as source for their Global supplies.

Indian Economy

The Economy of India is the fifth largest in the world with a GDP (a year's goods and services) of $ 3.72 trillion (U.S.). and is poised to be the third largest economy by 2027. If one considers PPP (purchasing power parity: how much that money can buy in India compared to other countries), the economy is third largest (worth $13 trillion U.S.).

China currently as Global supplier

China so far is considered to be the Global hub for international supply chain and many countries, their economies and corporates are relying on the supplies from the China. There is a growing realization now among the countries and the multinational companies that capacities cannot be concentrated at one place and are thus have started exploring the alternatives.

Post Covid19 Global Supply Chain Emerging Scenario

The realization has become more evident post episode of COVID19 many countries like Japan and USA are encouraging their companies and are offering incentives to move out of China and relocate themselves in other countries. Japanese companies are losing interest in China due to its falling economy. The US Commerce Department, State and other agencies are looking for ways to push companies to move both sourcing and manufacturing out of China. Other countries like South Korea, Australia, Germany and many other European countries are drawing up plans to persuade their companies to move to some other locations.

India as a Substitute for Global supply Chain Base

In this backdrop India offers a unique opportunity for all such companies to make base in India to be a trusted global industrial hub. India offers a Red Carpet Welcome to the companies to set up their operations as their preferred investment destination offering incentives and industry favorable policies specially in manufacturing, Artificial Intelligence and semiconductor industries. India is continuously working to mend its policies for ease of doing business. India is poise to become the Global nerve center of Multinational companies.

GOVERNMENT HAS UNDERTAKEN SOME MAJOR POLICY REFORMS TO SUPPORT MANUFACTURING CLIMATE IN THE COUNTRY BY:

Investment Schemes for promotion of New Champion sectors to launched in sectors such as Solar Power, Advances Battery Storage, Semiconductor, Smart phones, Defence, Space and technology; etc.

Some of the key strengths of the country are:

India is the world’s largest democracy with a stable political system. This provides a conducive environment for long-term investments, as policy changes are typically made through democratic processes and institutions.

The government is focused on making the country an attractive destination for foreign companies to come and manufacture in India. Make in India Make in India is one of such initiatives

Recently government has earmarked around 462,000 Hectares of land for the companies moving out of China of which approx. 151,000 Hectares is developed industrial land in various states.

The country is among the one of the cheapest source of skilled and unskilled labor helping the companies to reduce the wages cost.

India is one of the most vibrant countries in terms of technically skilled people, technology development and its adaptation. It is a well known fact that India is a leading force in terms of Information technology and is serving the global giants in various capacities. It is capable to offer highly skilled technical work force to any organization operating in the country

According to the World Population prospects 2022, India has 50% of its population below the age of 25 Years and 65% below 35 years of age. This will therefore drive innovation, productivity and growth.

With Corporate Income Tax rates at 15% for the new manufacturing companies to 22%- 25% for other companies, India is one of most competitive nation among the global pears providing huge incentives to have a base in India.

India is rich in natural resources like land, water sources, fisheries, mineral resources, marine resources, forests, rainfall, climate, and topography. In minerals India has an abundance of mineral deposits. The country is the second-largest producer of steel; the third-largest producer of coal; the fourth-largest producer of iron and has the fifth-largest bauxite reserves in the world. Overall, India produces over ninety different types of minerals

Infrastructure in India has witnessed a growth in spending. India is planning to invest more than $ 1.72 trillion over a 6 year period from 2024 to 2030.
India has:

  • Large coastal line for the ports
  • World class International Airports in all major cities
  • Vast net work of Railways and Highways throughout the length and breadth of the country

As per a Report India is poised to become the third-largest consumer market behind only the US and China; and consumer spending in India in the year 2022 was USD 2.07 trillion and is expected to grow from USD to nearly USD trillion by 2030,

India is the third largest startup ecosystem in world just behind China and USA with more than 1.14 Lakh startups in 2024 as per Department of Promotion of Industry and Internal Trade (DPIIT). Indian startup ecosystem and has become very vibrant and mainstream in many ways like job creation, solving problems of the consumers, creating products and solution provider to the world.

India has one of the oldest stock exchanges in Asia and ranks eighth in terms of “protecting minority investors” according to the World Bank.

Unlike many other emerging economies, India has a positive macroeconomic environment: inflation is under control, and it has record high foreign exchange reserves and a tamed current account deficit – thus reducing vulnerability to global economic shocks. India has vast foreign Exchange reserves of more than $481 Billion in the first week of May 2020.