Doing Business in India: Advantages and Disadvantages

By admin
2 years Ago

Doing Business in India: Advantages and Disadvantages

Why do business in India?

A Vast Population:

One of the critical advantages of starting a business in India is its vast population and a large market without boundaries with well-established logistics. India’s young population and expanding economic strength will be a magnet for global enterprises for decades to come.

Visit this Page for More Information: Start a Business in India

Sustainable Progress:

India is presently regarded as a growing and mighty economic power in the globe. According to the Mckinsey Global Institute, India’s 69 cities would each have a population of roughly 1 million people by 2025. Furthermore, a tendency has been identified in which Indian young are interested in moving from the rural settings to the city, implying that a considerable population will join the country’s middle and upper class -income categories.

Business-Friendly Laws:

In recent years, India has enacted vital legislation that has made doing business in India more efficient and accessible. The Goods and Services Tax (GST) law has significantly influenced the transportation of goods within the country. The Direct Taxes Code Bill, the Land Acquisition Bill, and much other existing legislation are favourable.

Read Similar Articles: Best Business Opportunities in India

Operating Costs are Low:

The cost of operation is low compared to those of other countries, whether it is infrastructure, phones, the internet, labor, salaries, or anything else needed to operate a business. Another advantage of doing business in India is that the workers here are willing to work for lower pay.

Initiatives and Movements of the Government:

The ‘Startup India Movement,’ for example, is a well-known and successful initiative launched by the Indian government. The Indian government attempted to implement reforms to attract Foreign Direct Investment, build trade relationships, and entice international investors.

Watch Video: Top 5 fastest growing industries in India | Best Industries to have enormous growth in 2021

Entrepreneurial Ecosystem:

The government has made several initiatives to eliminate obsolete rules and procedures, making it easier for businesses to operate and cultivating corporate partnerships to help the economy grow more broadly. As a result of these improvements, India’s ranking in the World Bank’s “Ease of Doing Business” criteria has improved considerably.

The Presence of an Extensive Trade Network:

Several technical and management institutions in India are accredited with the highest international standards and supported by regional and bilateral free trade agreements. In addition, there are a variety of business partners with whom to conduct business. These types of institutions provide extraordinary human resources.

There is a Large English-Speaking Population:

A large portion of India’s population speaks English, which provides a significant business opportunity and creates ease of doing business in India. Indians have a high level of English due to the historical connections between the UK and India.

Organized Employability:

India currently has a labour force of over 530 million individuals, most of whom are between the ages of 18 and 40. (Young population).

Dedicated Employees:

The Indian work ethic is strong, and they take pride in their work. They often work long hours to prove their dedication to the company and increase their prestige. The majority of Indians work eight-hour shifts six days a week.

Read our Books Here: Books On Startup And Entrepreneurship, Business Ideas For Entrepreneurs, Startup India Stand Up India, Most Profitable Small Scale Industry And Successful Business Plan For Startups

Three-year Tax Holiday:

Startups will be free from paying income tax for three years if they obtain an Inter-Ministerial Board certification (IMB).

Challenges of doing business in India;

Electricity and Registration Issues:

In India, registering a property costs a lot of money and can take several days. Second, the cost of electricity in India is cheaper than in the rest of the South Asian countries, but the procedures involved are tedious and time-consuming.

Permits for Construction Cost a Lot:

The process of obtaining construction permits can be costly and time-consuming. You must first get the Building Proposal Office’s Intimation of Disapproval and pay the fees.

It is also essential that your NOCs from the Tree Authority are appropriately assembled. Among other groups, the Department of Storm Water and Drain, the Department of electricity, the Department of Sewage, the Department of Traffic and Coordination, the Department of Environment, the Department of Finance, the CFO are also a part of concerns. It can be one of the disadvantages of starting a business in India.

Watch other Informative Videos:

Infrastructure Deficits:

India has earned a name for itself in practically every industry worldwide, but its infrastructural superiority is still a work in progress.

NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reputable brand for providing advanced strategic consultancy services. Its various services are: Pre-feasibility study, New Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Preparation of Project Profiles / Pre-Investment and Pre-Feasibility Studies, Market Surveys / Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant /Process / Equipment, General Guidance, Technical and Commercial Counseling for setting up new industrial projects.