With billions in its population, India is one of the most diverse places on the earth as well as one of the biggest markets in the international economy. Bringing foreign business into the country is one of the best ways of maintaining strong international relationships and economic agreements. There are many factors that support the startup culture in India for Indians as well as foreigners. In recent years, starting a business in India has been especially promoted by multiple legal and environmental factors marketed by the government. They are not only the beneficiaries of economic growth but also gives business enthusiasts a platform to capitalise their ideas and expertise. Here are 7 benefits starting a business in India:
1.Low labour and operational costs
The first thing that is considered by an entrepreneur before a business setup in India is the cost that will be incurred to set it up and run it. The cost factor is advantageous for a business in India because of the availability of cheap labour in the country whether they are unskilled or semi-skilled. Apart from low cost on human capital, other operational factors like transport, telecommunications and land prices are also economical enough to help a business cut down on costs.
2. Huge market and workforce
Millions of people join the workforce each year in India. This is why it is easy to recruit the right person for a job. Starting business in India needs the right kind of people who can set up a strong base. The highly educated yet easily available job aspirants satisfy the criteria that any budding business looks for. Plus, it is no new news that India's huge population makes it one of the biggest markets in the world. A startup in India can pick up the pace higher here because of the wider base of audience and consumers.
3. Startup-friendly laws
The last two decades have seen radical changes in the loss of India especially revolving around startups and businesses. With the promotion of 'Make in India', it became necessary to provide legal concessions and subsidiaries to business owners and budding entrepreneurs to aid their ventures. Two of the most remarkable reforms in business laws include the Goods and Services Tax Act and the Land Acquisition Bill. Though the former caused quite a stir and controversy, it was ultimately passed to show the country's support to new businesses.
4. Strong work ethics
Earlier, India was viewed only as an apt destination for back-end offices due to differences in work ethics and skills. In recent years however, this perception has changed. Indians are considered as some of the most hardworking people with strong moral values and high educational qualifications. A business setup in India has proven to be more fruitful because of the balanced labour laws of the country that work in everyone's favour.
5. Government aids and initiatives
Without the hand of blessings of the government, it is not possible to promote the business culture in any country. India has been one of the luckiest in this department as the government has taken some bold steps to build-up the earning potentials of the businesses. It has not only been lenient with the legal framework but also provided numerous aids and subsidies. These financial aids have made a huge difference in helping a business flourish in India and is likely to do so further as well.
6. Multiple supporting industries
No business can only depend only on its own production and distribution channels. The supporting factors of the country are an important deciding factor of starting business in India. The technical and distribution channels are quite strong in India that make the trading and distribution process smooth. The partnerships and tie ups with different businesses or ancillary industries support the free-flow trade between states as well as countries. The financial institutions have also eased on their structure of financial help to startups in India.
7. Breakthrough Movements
Though movements were only seen to be rising in India for social and cultural causes, they have picked up the pace for startups as well. The Startup India Movement and the Make In India Movement have become the two flag-bearing phenomena for the business scene in India. It paved the way for easier Foreign Direct Investment in Indian businesses. The influx of capital in India makes it a viable place for starting a business and additional employment opportunities as well. The latter movement has shifted the country's focus in producing the goods in India rather than importing it from forgein countries. This has given major support to local businesses and investors.
A combination of these 7 reasons makes it lucrative for any rational businessman to start a business in India. The plethora of steps taken by the Indian government has assured business owners of the liberal yet seamless legal bindings on startups. It is the time to get your ideas running and start a successful business in India.