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INDIAN ECONOMY-AN OVERVIEW Download India Vision 2020

India is world's largest democracy & among the strongest emerging markets in all business field. India now is a liberalized economy with 1.5 billion people with 300 million in the middle class bracket. We have well matured financial and securities market and time-tested judicial systems.

We are also a WTO member committed to providing opportunity to the global market. The Indian Government is constantly undertaking reforms in every sector with Infrastructure Sector receiving Government's fullest attention. India now permits foreign investment virtually in every sector of the economy. Majority foreign equity, even upto 100 per cent in some sectors, is encouraged and special investment incentives are provided in areas such as power, hydrocarbons, softwares, electronics and export oriented undertakings.

Foreign investment up to 50, 51, 74 and 100 percent in priority industries/activities, is eligible for automatic approval by the RBI. Automatic approval is also available for holding equity up to 51 per cent in trading companies engaged primarily in export activities. In addition, 100 % Export Oriented Units (EOUs) and units set up in designated Export Processing Zones (EPZs) are eligible for automatic approval provided they satisfy stipulated criteria. Foreign technology agreements are also eligible for automatic approvals within certain limits. India has 5 major metropolitan urban centers growing @ 2.1 % p.a India's urban population is 218 million as of 2002, and expected to be 500 million by 2012:

Indian economy has a favorable business environment in India

Set up business in India

Indian economy is on the spree of encouraging foreign companies to penetrate Indian markets. Setting up of business in India has now become simpler compare to earlier years of closed economy. The Indian markets are, as on date rated a one of the most vibrant markets from expansion of business point of view. India’s dynamic and highly competitive private sector has long been the backbone of its economic activity and offers considerable scope for foreign direct investment, joint ventures and collaborations.

Setting up business in India requires an entrepreneur to streamline the line of thinking as to the ownership pattern. Depending thereon, the format of business is decided. The source of investment is also equally important that will decide the further benefits arising out of multi bilateral treaties with other countries. The Government of India offers many opportunities to multinational companies to venture in India be it software, retail, telecommunication, infrastructure. Investments in all these sectors are governed by the relevant rules and regulations promulgated from time to time. Indian market is most favoured because 70% of the population is still untapped which is a big number.


India has become a favorite destination for business houses world wide for the following reasons:

  • Large pool of educated low manpower cost in India

  • Significant lifestyle and standard of living

  • Cities with world class integrated infrastructure recognized as necessary drivers of Indian economy's growth

  • India has potential to attract more then US $ 100 billion over next five years

  • Export Oriented Sectors alone to attract US$ 11 billion investments

  • Increase in FDI will lead to increase in GDP

  • Potential for creation of 1 Million direct and indirect jobs each year

We invite you to browse our website for business environment in India , Indian economy & low manpower cost in India . To know more about Indian economy or any queries regarding business environment in India contact us at . Get knowledge about setting up business in India or setting up a Trading company in India

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