What Is the Climate for Doing Business in India? Is It Supportive of Foreign Investment?
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What is the climate for doing business in India? Is it supportive of foreign investment?
The climate to do business is promising at the time. There have been issues in the past with certain companies such as PepsiCo and Gillette. Times have changed and India will soon be considered as a developed nation. Foreign investment is supported in India. The article mentions the increase in foreign direct investment to exceed $3 billion in the year 2000 and $27 billion in the year 2009. Though Indian population is very diverse in nature, English is spoken as the national language among the educated people. This makes the processes for a foreign investor smoother. Indian Government support the economic growth through foreign investment foreign investment has brought positive outcomes for the nations GDP. Moreover, expertise and skill is available for the technical fields in India. Wages and salaries are low compared to other first world nations.
How important is a highly educated human resource pool for MNCs wanting to invest in India? Is it more important for some businesses than for others?
A highly educated human resource pool is important in for the MNCs dealing in medical, engineering and telecommunication to invest in India. As mentioned earlier, they can be hired at a low salary. Communication becomes easier and growth becomes faster with such an asset. Negotiations with Indian partners are easier to deal with. Highly educated people represent a safer and stable economy, which is an important aspect for foreign investors. Other than the aforementioned areas of business, a highly educated human resource may not be necessary. For example, a MNC like IKEA who deals with Indian rug makers may only need skilled laborers.
Given the low per capita income of the country, why would you still argue for India to be an excellent place to do business in the coming years?
A large portion of the Indian population lives in the rural part. The main occupation of this portion of population is agriculture. As a result, the per capita income is low. The remaining portion of the population represents highly educated and urban population. They have been the reason for a fast developing economy with regard to the FDI. More and more MNCs are investing in Indian market, considering it as an opportunity to enter without prior competitors already established. If India continues to grow economically at the present rate, it will soon be a developed nation. The Government is stable. It supports the policies for a growing economy. For MNCs there has always been a choice between India and China. As a result, the government and Indian companies make the opportunity for the MNCs to be as lucrative as possible. The relationship with neighboring nations has improved over the past few years. This makes it a stable nation to invest in.