Why is India Attractive to Foreign Investors?

 

The government’s sophisticated economic policy, farsighted development strategy, and the advent of disruptive technologies are broadening the horizon of the Indian Economy. Such farsighted and sagacious steps are not only unlocking new avenues of economic prosperity but also influencing foreign investors to invest in India. FDI in India is proving quantum-leap for India’s business environment. It is not only changing the economic landscape of the country but also strengthening the socio-economic sectors of the country and rejuvenating the basic infrastructure of the nation.    

India’s phenomenal growth in FDI is notable and mesmerizing the whole world, especially in this time of COVID-19 pandemic when the global economy is passing through a tumultuous phase, FDI in India is increasing with a good growth rate. But how? Let’s see below these five factors, which are working as a catalyst for the growth of foreign direct investment in India.      

Lucrative FDI Policy:

India’s lucrative FDI policies and stable tax regime are attracting foreign investors. Recently in 2021, Finance Minister Nirmala Sitharaman increased the FDI limit for insurance companies from 49% to 74%. Apart from that, the government allowed 100% FDI through automatic routes in sectors like Agriculture & Animal Husbandry, Mining, Defense Manufacturing, Broadcasting, Civil Aviation – Airports, Railway Infrastructure.   

The Dexterous Workforce at an Affordable Price:

With 29 years of average age in 2020, India is one of the youngest countries in the world. This means India has an adroit workforce that will remain active and productive for a long time. Significantly, the labor price in India is quite affordable, which fascinates foreign investors to invest in India.           

Ease of Doing Business:

In the last five years, India emerged as a safe and vibrant place for doing business. In the matter of ease of doing business, India’s rank is 63, which is assuredly a positive thing is in favour of India that ensures the credibility of the country.   

Political Stability:

After seven decades of independence, India is identified as the largest democratic country in the world that is also a symbol of the power of a common man. Leaders are elected by the common man through a fair election. Such type of political stability ensures a safe and secure business environment, which attracts foreign investors.

Technology and Innovation:

India has immense possibilities of technology and innovation. India has talented and diligent engineering graduates, which is a huge positive for companies who find a ready-made talent pool. Indian engineers get perfect exposure to polish their skills while working for global companies.

Professional and World-Class FDI Consultancy Services:

In India, there are many legal firms which provide professional FDI consultancy services to the foreign investors. These legal firms offer swift and easy A-to-Z business legal services to the foreign investors who set-up their business in India. 

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