In this era of globalization, no country can function in isolation. In order to flourish and improve economically, financially, and technologically, each country needs to come out of its shell and engage with its counterparts in every region across geographies. This is what we call International Business, which has attained prime significance, especially for large and fast-growing economies, including India.
Earlier, China was seen as a significant manufacturing, operational, and supply chain hub, but with Covid-19 outbreak, the scenario seems to changing. Now international companies are looking for alternate / additional production and assembly destinations like India. The reasons of India being viewed as an attractive market are plenty:
- Lucrative middle-class segment
- Special economic zones that offer duty-free exports
- Skilled manpower at a reasonable cost
- Reduced corporate tax rates
- Production Linked Incentive (PLI) scheme
- Improvement in Ease of Doing Business
- Fourth fastest Start-Up hub, globally
All the above grounds make India an ideal market for global companies to invest in.
Having said that, we also need to ensure a business-friendly environment for international companies. The Government is fully conscious of the importance of this factor, which is why it is taking steps towards making India a global business hub through its business-friendly policies. This is to help foreign companies do business in India with lesser restrictions.
Some of the efforts that the Government has made in this regard are:
- Sustained effort to finalize Free Trade Agreements (FTAs) to benefit domestic industry as well as to make them simpler and more user-friendly. FTAs with the UAE and Australia have been operationalized. Negotiations with EU, UK and Canada have advanced significantly
- Initiating bilateral trade agreements with multiple countries
- Implementing Production-Linked Incentive (PLI) Scheme for 13 sectors
- Bringing down corporate tax rates to around 15%
The above-stated efforts have primarily ensured that India benefits the most and that it is able to maintain its ‘Fastest Growing Economy’ tag. As per the Ministry of Commerce and Industry, India’s merchandise exports stood at $116.77 billion in April-June 2022-23, an increase of 22.22% over the $95.54 billion in April-June 2021-22. Our rising exports are an indication that India is heading towards being self-sustained through increased domestic production, consumption, and exports, in keeping with our motto, that “Make in India for the World” which is taking the international market by storm.
India is also a major source for highly educated and motivated workforce, which can be clearly evident from the fact that a number of CEOs of top global companies are from India or of Indian origin. This is primarily due to the fact that Indians are known to be hardworking, intelligent and dedicated to their work. One can find talented and smart Indian workers, especially in the field of technology. This makes them attractive in terms of employability. The Government’s Skill India programme has contributed majorly to making India the Skills Capital of the world.
Be it in Manufacturing, Defense, Automobiles, Financial Services, Banking or Pharmaceuticals, India is creating its own space in these important sectors by being self-reliant and exporting goods and services to several parts of the world. India tops the chart as the fastest growing nation in global services trade. This is a positive growth and it means we are headed in the right direction of becoming g “Aatmanirbhar Bharat” and “Make in India for the World”.
In general, with quality exports, strong infrastructure and services, and a lucrative business environment, India has all the potential to for further sustained high growth, and to establish for itself a unique place in the international marketplace.
Written By R K Gupta Founder of Vibgyor Marvels, Former Chairman-cum-Managing Director, WAPCOS and NPCC, Ministry of Jal Shakti, Government of India, President, India Water Partnership