Business in India
According to a survey result, it is found that in the year 2013, India stands at a point where the compass could either point south towards the all-too-familiar path of unfunded welfare economics, intensifying the slowdown currently underway, or it can be a turn 180 degrees and allow entrepreneurs to take off. It is the belief that government will select a mix of the two and there lies an opportunity for smart entrepreneurs.
Reasons to start business in India
As world is full of output is expected to rise by 4% a few years ago, the emerging economies are also going to lead it. Among them, there is two fastest growing country and it will be China (8.1%) and India (5.9%) versus the US (2.5%) and the Euro area (0.8%). So, of the two growth leaders, India will be easier for entrepreneurs from democracies to comprehend.
Government is back at the wheel
Down the line by a severe “policy called freeze,” the government sourced its relationship with business in the year 2012. And since September, the new lawmakers have begun to show signs of life: like Parliament passed the contentious Banking Laws Amendment law, which allows corporations to set up their banks, making the capital more readily available. The government has announced some beneficial proposals, for example, allowing foreign companies to take ownership stakes in certain Indian retailers.
Inflation is beginning to moderate
The biggest cause of India’s inflation is apart from high and rising commodity prices over the past years, it is a supply side squeeze towards few goods in the system. Majority of Indians business status is on high inflation rate throughout the year is now ending. While inflation is below 8%, but through consumer price inflation stands close to 10%, few market experts say that this should fall to 6.5%. A drop in inflation rate combined with a relatively high growth rate and this is the kind of environment that outside investors and entrepreneurs should relish.
The cost of money will come down
Challenges in inflation, that the Reserve Bank of India has kept so high interest rate over the past few years. Most of time, the RBI’s tight the money policy hit by investment harder than inflation. But, if the inflation cycle has positively played, than in duration of around six months the interest rates will fall by 100-150 basis points, adding some spark to the economy.
Business-friendly laws could be enacted
Important bills will be debated in Parliament. The Goods and Services Tax Bill may increase efficiency of the movement of products across India. The Direct Taxes Code Bill can clean up tax laws. But the most important and controversial law will be the Land Acquisition Bill. If, this passed, it could provide the governing coalition political free force while the elections. The Companies Bill, which updates Indian corporate law for the 21st century, has already been cleared by the lower house and it should pass the upper house in the budget session of Parliament.
Workers are ready
The 500 million Indians under age 25 are keep continue to follow their aspirations to a better life. The median age in India is 25.1, as compared to the US’s 36.9. In a free-enterprise economy this kind of population distribution has often led to a long-term economic boom, the kind begun Japan in its 1950s (median age 25.5) or China in the 1980s (median age 22.4). Further, the nature of those youth aspirations has changed. The young Indian population is looking beyond agriculture or daily wages. It needs learning, which creates opportunity for entrepreneurs who willing to invest in training and is one of the best reasons to start a business in india.
Markets are waiting to explode
In India’s GDP, consumer spending stands at only 57%, compared to 72% for the US. This suggests that there is some around $1.2 trillion worth of opportunities in Indian emerging consumer sector. Due to governments mismanagement in finances, the results is slowdown withstanding, prosperity in the medium term will increase but not merely the base GDP but if the share of consumers spending as well. Than in coming future you may see the first steps towards that trend. If you are planning to do business in India this year, you could be getting in on the ground floor.