Set to become the third largest economy in the world by 2025, India presents enormous opportunities for foreign investors.With a population of over 1.2 billion, more than half of which is under 25, the country has huge production and consumption potential. Since liberalization in 1991, India has continuously recorded high growth rates, averaging quarterly GDP growth of 7.45 percent between 2000 and 2011.
India’s strengths speak for themselves. The country benefits from:
- A labor force of 487.6 million
- A large and growing middle class, creating a steady increase in domestic demand
- An English-language business environment
- Cost competitiveness
- World-class expertise in IT software and business process outsourcing, with services accounting for more than half of India’s output
For foreign investors, these strengths have proven highly attractive. In spite of a challenging business environment that ranks 132nd in the World Bank’s Doing Business listings, India remains the fourth most attractive foreign direct investment destination in the world, behind the US, China and the UK.
This publication introduces the fundamentals of foreign investment in India.