There’s no denying that India is one of the fastest-growing and developing nations globally, and in terms of business, there are eyes on the country from all over the world. As the world’s largest democracy, investors, business ventures, and entrepreneurs are all keeping their eyes on India to see whether this is the country they want to expand into next.
However, even though the country has the fifth-largest GDP in the world and has ranked as one of the highest growth countries in the decade, there are still challenges to starting and operating a business within Indian borders that are holding people back. For clarity, today, we’re going to look into the three pros and cons about doing business in India.
Pro – The Economy Stable
Of course, we write during the times of COVID-19, which means we’re not really sure what any economy is going to be doing over the next few years, but generally speaking, and especially up until this point, India has one of the most stable economies in the world, which makes it a great place to do business.
This has been spurred on by a stable and reliable government, increased private consumption, government investment in different areas of the country, and its high rankings in global indexes like the World Economic Forum. All in all, on paper, India has a very business-friendly economy.
Con – It’s Not Easy to Get Started
Currently, it can be quite challenging to start a business in India, and it can be quite a lengthy process that can be offputting to many. There are many legal contracts that need to be filled out and processed, such as GST registration, lots of property forms that need to be registered, and so on. The cost of registering property is around 7.4% of the value, and with a 68-day registration period, it’s no wonder business owners may be waiting around for this process to be updated.
Pro – India is Digital-Ready
Lots of people like to argue that India is a bit behind in the times when it comes to technology. Countries like the UK and the US were 10 years ago is where India is now, and while they may have been true a few years ago, there’s no doubt that India is catching up at an alarming rate.
India is referred to by many as the technological powerhouse of innovation, and there are high-tech companies across all niches and industries that are springing up all over the place, including in telecommunications, textiles, pharmaceuticals, and many more.
In fact, such innovative practices have now placed India as a front-runner compared with the likes of the US and China, and from a business standpoint, this means there’s a ton of opportunities to get involved with.
As you can see, there are good points and bad points for starting or operating your business from India, just like there are everywhere in the world. The truth is, India has come a long way over the last few decades, and there’s no doubt that the country is or soon will be entering some kind of modern golden age.