Benefits of business setup in India

In past decades India was portrayed, in British films, as an exotic destination for adventurous tourists but since then a lot has changed. Nowadays India has a rapidly developing economy and is the second-most populous country in the world with a massive population estimated at 1.38bln as of 2020.

In this insight, we discuss some of the numerous benefits available to Foreign Investors looking to set up business in India.

Large Population

Massive consumer market:
As mentioned above India has a fast-growing population which is soon expected to become the No.1 most populous country in the world. Providing s businesses with a massive unified market.

Availability of Labour Force:
The majority of India’s 1.38bln population falls under the working-age group (18-65 years) which means that businesses can easily recruit both skilled and unskilled staff. English is also widely spoken which means that communication for foreign investors does not pose a problem.

Low Operational Costs

Due to the low cost of living, the cost of setting up and operating a business in India is only a fraction of that of advanced Economies. Investors setting up business in India benefit from the low operational costs and have a competitive advantage against investors in countries with mature economies. This is one of the major reasons why India is becoming very popular, not only for setting up a new business but also for outsourcing both services and manufacturing.

Business-friendly Laws and Government Initiatives.

The Indian Government, in recognizing India’s potential to attract businesses, has in recent years passed major laws to facilitate setting up new businesses which operate in a friendly business law framework. Additionally, India has negotiated and put in place a large number of favourable double tax treaties with other countries as well as incentives for new investments like the “Startup India Movement”, the introduction of FDI (Foreign Direct Investment) reform and many others.

Digital infrastructure and competitiveness

This is an area where India has invested heavily making it a magnet for high-end companies in information technology, telecommunications, manufacturing, pharmaceuticals etc. India today is considered one of the major forces globally in technology innovation.

Tax System

India has a comprehensive tax system with an extensive network of Double tax treaties and the recently modified Direct Tax Code, Goods Services Tax (GST) and Land Acquisition Bill all have been designed to attract and encourage business.


In conclusion, India today, with its massive market and labour force, advanced infrastructure and business-friendly environment and consistently growing economy and stable political system is a jurisdiction that cannot be easily overlooked by businessmen looking for attractive investment opportunities.