India's strong fundamentals such as a growing middle class population, cost competitiveness and strong domestic consumption, have made it a preferred destination for MNCs from across the world.

The World Bank, IMF, UNCTAD and Goldman Sachs predict the 21st century as the "Asian Century" with the growth being led by the giant economies of China and India. The financial meltdown in the USA in 2008 and the consequent recession that engulfed the entire developed world has tilted the world economic order even more in favour of Asia.

The Indian economy continues to grow at a good pace and holds a strong position on the global map. The Indian economy has expanded at an average rate of 8% (GDP growth) for the decade of 2000-10. In terms of Purchasing Power Parity the economy is poised to climb up one step to become the third largest economy in the world in 2012. The growing economy provides mindboggling opportunities of doing business in India in all forms; to source from India, to market in India or to invest in India.

The Indian market with its one billion plus population, presents lucrative and diverse opportunities for exporters with the right products, services, and commitment. India's requirements for equipments and services for major sectors such as energy, environmental, healthcare, high-tech, infrastructure, transportation, and defense will exceed tens of billions of dollars in the mid-term as the Indian economy further globalizes and expands. As per the latest data available, India's GDP growth for FY 2012-13 was 5%. With expected continuance of the government's liberal policies, India has potential for a sustained high growth for the next couple of years and companies must seize the opportunities to enter the rising Indian market.

The Planning Commission of India is developing the tools to evaluate the business environment in the country as part of the implementation strategy for the National Manufacturing Plan (NMP), which aims to raise the sector's contribution to the economy from 16% to 26% by 2024.

It is today one of the most attractive destinations for business and investment opportunities with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. In FY11-12, the country attracted FDI of around US$46.8b in various sectors.

India has a robust, transparent and stable financial market, which has gradually transformed from a highly controlled system to a liberalized one.

India's demographics are very attractive with approximately 65% of the total population falling in the age group of 15 to 64 years. A comparatively stable government, an open democratic set-up, and a strong and reliable judiciary system, add further advantage to the Indian economy.

Reasons to invest in India:

1. Fastest Growing Population: India has the fastest-growing population in the world, expanding at the rate of some 16 million per year. At that rate, India's population will exceed 1.4 billion people and be larger than China's by 2030. What's more, per-capita income in India has risen steadily over the past five years, from $285 to around $550 today.

2. Government Aids - Loans & Investment: Government investment in the country's infrastructure is soaring - jumping 9.9% from 2007. And the country needs it. Auto sales are zipping along at a 17% growth rate ... airline passenger traffic is expected to more than triple over the next five years from 14 million per annum to around 50 million. Over the next four years, by 2012, the government plans on spending a total of $500 billion to build out and improve India's infrastructure. Extensive opportunities for trade through investment incentives, Examples include the so-called Special Economic Zones and the lowering of import tariffs for certain product groups.

3. Growing Manufacturing Industry: Manufacturing now accounts for almost 30% of India's economy. When most analysts and investors think of India, they think of agriculture, textiles, and usually its famed information technology service industry, which handles the outsourcing for hundreds of U.S.-based computer hardware and software manufacturers and telecoms. But in fact, the single largest employer in India is the manufacturing sector, which employs more than 100 million people, more than 25% of the total employed in India, and which is growing at a very healthy 8.8% clip.

4. Boost in Corporate Earnings: Corporate earnings in India are growing at an astounding 35% annual rate. The 30 largest companies in the Mumbai Sensex index increased their earnings at an incredible 35% in their first quarter of this year, blowing away estimates. Revenues jumped 20%. Out of 800 publicly-traded companies, average earnings growth is a blistering 17%.

5. Private Equity: Private equity investors are now putting more money in India than in China. Nearly $20 billion in private equity poured into India in 2007, a 156% jump versus '06, and 34% more than went into China in '07. The ballooning Indian middle class - 330 million and growing - is spending their newly-earned money, ramping up retail sales growth that should average 13% or more for the next several years.

6. Government Policies: Regardless of a succession of government coalitions, the Indian government continues to liberalize certain markets.

7. Huge Market: A huge consumer market; boasting more than 1 billion consumers, many of whom have greater spending power than ever before.

8. Skilled workforce: Plentiful supply of young and highly qualified (technical) personnel. India has almost 400 universities and 1,500 research institutes, every year, India produces 200,000 engineering graduates and 9,000 doctoral graduates, their knowledge and command of the English language is excellent.

9. Legal Framework: India has a good legal protection framework for investments



Time to Complete

Associated Costs


Obtain director identification number (DIN) on-line

1 day

INR 500


Obtain digital signature certificate on-line

1 day

INR 750 to INR 2650


Reserve the company name with the Registrar of Companies (ROC) on-line

2 days

INR 1000


Pay stamp duties online, file all incorporation forms and documents online and obtain the certificate of incorporation and commencement.

3-7 days

INR 25,000


Make a seal

1 day

INR 350


Visit an authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI) Investors Services Ltd to obtain a Permanent Account Number (PAN)

7 days

INR 105


Obtain a tax account number for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department

7 days, simultaneously with Procedure 6

INR 60


Register with Office of Inspector, Mumbai Shops and Establishment Act

2 days, simultaneous with procedure 7

INR 2,400 (registration fee) + 3 times registration fee for Trade Refuse Charges (INR 7,200)


Register for VAT online

10 days, simultaneous with procedure 8

INR 500 (Registration Fee) + INR 25 (Stamp Duty) for compulsory VAT registration


Register for profession tax

2 days, simultaneous with procedure 9

no charge


Register with Employees' Provident Fund Organization

12 days, simultaneous with procedure 8

no charge


Register for medical insurance (ESIC)

9 day, simultaneous with procedure 10

no charge