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Why India is Hotspot for Starting Up Business?
India has been topping the charts in the list of booming economies. The Indian market has seen a dramatic rise in domestic and foreign investments, the reason being that it is a lucrative business destination. Last year, India moved into top 100 in the global ranking of World Bank’s Ease of Doing Business Index which has put it in the limelight for starting up businesses.
Entrepreneurs who are seeking to expand their business want to launch their businesses in places where favorable business conditions are being offered. Rather than struggling to compete in developed nations, it is a better idea to choose a developing country like India where start ups have an excellent opportunity to do well.
Here are some reasons why India is a hot spot for starting up business.
Favorable Startup Ecosystem
India’s business culture is quite supportive for startups. The startup entrepreneurs are coming up with breakthrough ideas and innovations. This is especially true for particular sectors like e-commerce, financial and banking services and technology. New business owners find it easier to penetrate the Indian markets as they are more generous in accepting new businesses. But, an important point to keep in mind is that every startup should have a strong strategy that helps in sustaining the profits in the long run. If you are aspiring to launch your own startup, you can professionally enroll in an entrepreneurship management course.
Business-friendly Rules and Regulations
In the past decade, India has witnessed several noteworthy business reforms. The government has passed many laws and regulations that directly benefit industrial sector. For instance, the Goods and Services Tax (GST) was introduced last year to encourage uniformity and transparency in businesses. Similarly, the Make in India campaign, Digital India initiative and other similar policies support both national and international businesses to open up their branches or new firms in India. Easy flow of foreign currency and products gives a boost to the foreign players to invest heavily in India. The government’s initiative ‘Startup India’ has given a tremendous boost to new and small businesses.
Huge and Cheap Workforce
According to a survey, India’s working-age population will peak by 2020. More than half of the population, that is about 600 million, is under 25 years age bracket. In fact, no country has a younger population like India. Since India is a free-enterprise economy, a population distribution of this kind leads promises a long term economic boom. Most of the youth in rural India want to go beyond farming or daily wage jobs. Instead they are seeking learning opportunities that can help them earn more in future. This in turn is a boon for entrepreneurs who are willing to train more workforces for their business. As many entrepreneurship management courses teach, business management principles involve skilled people who can work efficiently to increase productivity of a business. On the other hand, there is also cheap labor available, thus making employment a simpler task.
English Language
Since most countries consider English as the universal language, it becomes easier for foreign businesses to converse with local staff and community through English language. Both school and colleges provide English education, thus making it easy for Indians to secure jobs with domestic and international companies. There about 125 million English language speakers in India, and that’s a huge number!
Strategic Geographic Location
As compared to other countries like China, India’s geographical position on the globe makes it easier to be chosen as a production hub for many production companies. For instance, Hyundai produces its cars in Chennai which are then sold in Africa and European countries. Shipping from India to other countries like Middle East, South Eastern countries and Africa is shorter and is an economical option for many investors. India is well-connected to domestic and international destinations via rail, road, air and sea.
Infrastructure Development
India’s infrastructure development is nothing to boast about, but it presents a great business opportunity in disguise. It means that there is enough scope for development of real estate, telecommunication and technology infrastructure. It is being said that India will be the frontrunner in the fourth industrial revolution.
Emergence as a Modern Society
While India has several social evils rooted in its culture, there is a new set of modern generation that is bringing a fresh and open mindset. India is emerging as a society where culture is witnessing a shift from being highly conservative to a modern economy. The Indians are crossing the international borders, develop a global outlook, are more educated and acceptable- all these factors are contributing to building a modern India. Further, entertainment, news and information are now easily accessible through the internet and smart phones even in the rural pockets and village of India, thereby introducing them to a new world and informed choices.
These factors are a clear indication that India is one of the best hotspots for starting up a business.
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