Most attractive: Indian Emerging Market
India has been one of the fastest-growing Asian economies in the world over the last few years. Some of the major stimuli to this growth are the rising demands of a large consumer base and significant development of the IT and manufacturing sectors. As per the latest statistics presented by the World Bank, the annual growth of the Indian emerging market between 2009 and 2019 was about 8.4%. This was considerably higher than the global average growth of 3.8%.
A recent report on Indian manufacturing hub states that in terms of economic growth, India stood at 4th position when compared to the Asian peers in the financial years 2019-2025. Furthermore, the report also maintains that India’s manufacturing sector has the potential to reach a valuation of USD 1 trillion by 2025.
Such an impressive growth trajectory is also creating enormous market competition among foreign investors who are willing to enter the industrial sector in the Indian emerging market and are looking for an India market entry consulting service. To this end, manufacturing consultants in India are providing enormous help. With detailed insights into the current market conditions, financial and legal framework, consultant experts are actively supporting foreign organizations with robust India market entry consulting that will help them secure sustainable growth.
The Gross Value Added (GVA) from the manufacturing sector in India grew at a rate of 5% CAGR based on the current prices between FY 2016 to FY 2020. With strong development in the production of intermediate goods, basic metals, food products, tobacco products, etc., business conditions in the manufacturing sector continues to remain optimistic even in stark market uncertainties following the COVID -19 pandemic.
Furthermore, the Purchasing Manager Index of India in 2020 reduced from 58.9 in October to a 3 month low of 56.3 in the month of November. This is a sign of strong growth of the manufacturing sector in the country despite losing traction due to the uncertainties set forth by the pandemic.
Business setup consultants India are also contributing immensely to this rise. By simplifying the market entry strategies and India market entry consulting for new foreign investors with personalized India-specific strategies, reliable manufacturing consultants in India are making businesses flourish like never before.
Factors that are promoting this accelerated growth of the Indian Emerging Market
Here are some of the essential factors contributing to India’s competitiveness and scope for an unmatched ROI pool.
Geographically, India is well connected to major countries around the world. With an enormous coastline of 7500+ km, there lie colossal opportunities for developments of ports in the long run.
Furthermore, the current 13 major ports, 10 international airports, and about 80 international carriers facilitate convenient connectivity to nearly 55 countries across various continents.
Strong support of infrastructure
India’s existing infrastructure offers strong support to facilitate the rapid development of the manufacturing industries. 100+ operational airports with many under construction, an enormous 67,368 km of railway connectivity, 10,800 km of roads and highways, and 657 km of new metro corridors characterize the country’s current infrastructure.
Expected infrastructure development
The Government of India has undertaken a planned infrastructure investment of about USD 1.3 trillion for the next 5 years. This is almost equal to Australia’s GDP. The focus is on building infrastructure to establish a strong network of bullet trains in the country to facilitate faster internal connectivity.
Apart from this, there is an increased drive to create 100 smart cities pan India and further improve the coastline and roadway connectivity. Professional manufacturing consultants India and business setup consultants India can certainly help foreign companies in this regard to make the most of such perks.
Low-cost skilled labor
The availability of cheap and skilled labor also attracts several foreign organizations to set up their businesses in the country. The reasonable wage structure of India also offers it a competitive advantage when compared to other Asian countries like China. As per India Briefing, the minimum average wage for contract workers in India is USD 148 per month as compared to USD 234 in China.
Moreover, with strong support from project management services in India, foreign organizations are able to derive cheap and skilled labor without much hassle. A professional manufacturing plant setup consultant in India offers extensive human resource management and ensures foreign organizations can secure industry-best talents who can help with smooth business operations and development.
India has a massive reserve of natural resources like iron ore, bauxite, cotton, high solar insolation, etc. This proves advantageous for makers of textiles, renewable energy, apparel, basic metals, and chemical products immensely.
Impressive logistics capabilities
India is gradually improving its logistics capabilities with extensive investment in infrastructure efficiency. The country is also focusing actively on improving tech-driven logistic facilities. Furthermore, though quite high, India’s 14% logistic cost is considerably cheaper than China, which stands at 15%, as well as other Asian countries.
Apart from these significant factors, India market entry consulting services have also proved highly beneficial for foreign investors in securing higher ROI from the Indian emerging market trends. With a continuous tracking of technological development and thorough analysis of the market structure, business setup consultants India are actively helping foreign organizations to establish new manufacturing plants, reduce investment risks, and secure sustainable growth.
Favorable Government Initiatives
The Government of India has also taken several important initiatives and has formulated important policies to support the healthy development and growth of the economy. The intervention of reliable project management services in India and India market entry consulting can further help foreign investors. Let’s have a look:
Product Linked Incentive Scheme (PLI)
In March 2020, the Government of India proposed a PLI scheme with the prime aim to offer incentives to companies on incremental sales. This is an important part of the Make in India drive which offers favorable grounds to foreign organizations and promotes setting up new units in India.
The Government notified that it would give 4-6% incentive to electronic companies and has also offered USD 940 million (INR 6940 crores) worth of PLI for about 53 bulk drugs. Apart from this, the PLI scheme is expanded to 9 other sectors related to textiles, specialty steels, food processing, auto components, solar photovoltaic modules, white goods, and more.
Foreign organizations are actively collaborating with business setup consultants India and project management services in India to mitigate the registration process of PLI and other legal parameters to enjoy the benefits of the scheme and secure better returns over investments.
100% Foreign Direct Investments
To further improve investment from foreign firms and drive economic growth, the Indian Government formulated the policy of 100% FDI in various sectors.
In the Pharmaceutical Sector, the union cabinet gave the nod for 100% FDI under automatic route for the production of medical devices based on certain conditions.
In the automobile sector, too, the Government has offered 100% FDI with the primary aim to bring competition in the sector and ensure rapid development.
Further, in the Indian FMCG sector, the policy of 100% FDI is made applicable for food processing, single-brand retail and cash and carry segments to offer a significant impetus to the Make in India Drive.
The Growing Need of Manufacturing Consultants India and Business Setup Consultants India
Enormous and optimistic business opportunities are certainly making India a competitive ground for foreign investors. Foreign organizations are facing tough competition to secure a strong foothold in the country and achieve higher profitability. Without adequate insights into the market condition, diverse consumer behavior, and the complex financial and legal structure, any market-entry strategy will prove inefficient.
This is why there is a growing demand for India market entry consulting and manufacturing consultants India, like Tecnova among foreign investors.
Tecnova, one of the leading business setup consultants India, offers you personalized India market entry consulting services which include:
- Structuring a corporate growth strategy with thorough market research
- Track recent trends in market and technology to identify new areas of business application
- Comprehensive sales and marketing solutions
- Setting up of manufacturing plants and R&D centers
- A complete human resource management support
- A thorough supply chain management with an expert team
With a persistent development on multiple fronts, India has emerged as a fertile ground for foreign investors and guarantees higher ROI. However, the country thrives through diversity on all fronts and is mostly characterized by dynamic consumer behavior.
Therefore, foreign firms must take due care to structure their India entry strategy with active help from a professional India market entry consulting and manufacturing plant setup consultant in India. This will help to exploit the recent market trends to their fullest and enjoy unmatched ROI.