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Trade in India

By on April 22, 2015 in SMEs Insights with 0 Comments

India has emerged as an attractive destination to do trade with. Investors are preferring India for both their manufacturing supply chain and services. Since the services sector forming the keystone of Indian economy, Indian government is focusing to strengthen the manufacturing ecosystem of country.

Research states that investors from all over the world are expecting India to be a major manufacturing hub by the year 2020.


India: A Trade Perspective


As per a survey, ”India remains one of the top global destinations for FDI despite the . The key drivers are its an educated workforce, solid domestic market, and competitive labor.”

Survey found that India accounts for more than 20% of the total capital allocated for development.

According to the survey conducted of 500 international investors, India featured distinguished in many of respondents’ plans for the future. More than half of the respondents have planned to get indulged into or intensify their existing business operations in India shortly.

Government Support

In order to make India a better place to do business, the government is working to cut down the time for registering a business from 27 days to a single day.

Reasons behind:

Increasing India’s Foreign Direct Investment

According to Ernst & Young’s attractiveness survey, India 2014: Enabling the Prospects, In 2012, India’s share of global Foreign Direct Investment in the year 2012 was 5.5 % in terms of value and 6.3 % in terms of projects which has been increasing year by year as shown in the graph.

Skilled Workforce
India is full of talent. As per the estimations, approx 4 million graduates in 2011 there was an addition of approx 4 million graduates in 2011. However recent government education policies for opening more educational institutes in India will give a boost to India in the upcoming time period.

Profitable Market with a Challenging Business Environment
The USPs of Indian market is competitive labor costs and as mentioned above, its qualified workforce. Foreign investors also accolade its education system and strong management. Even so, weaknesses of the country are under-developed infrastructure and restricting operative environment.

To grow by leaps and bounds by the year 2020
Positive factors such as increase in domestic consumption levels, rise in middle class are strengthening the position of India in the global market.

Research says that India will enjoy higher level of growth in manufacturing in upcoming years.Numerous other factors such as growing population, increasing gross national income and more in queue together makes India- a trade perspective.

To conclude, doing business in India equals to inviting business growth and profits. Do you want to trade in India?


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