Free Doing Business In India Report Example

Business

India is very complex and diverse country which is famous for its regionalism, strong impact of religion and caste system. It ranks first among the countries with the fastest growing population that now amounts to near 1.3 billion of people. This Asian country is now a new power in the region though the nominal GDP per capita, that is $1,625, remains too low. The country faces terrible inequality and has more than 20% of population below the poverty line. The income category of India according to the Doing Business Rating is lower middle income. India is the world’s second largest producer of food next to China. Due to the domestic market, that continue to grow, food production is likely to double in the following years. The main industries are software, chemicals, agriculture, textiles and machinery. Agriculture still employs the majority of labor force.
Doing business in India encounters many problems. It attracts by its gigantic domestic market and huge and cheap labor force. Moreover, being a democracy, India opens itself to the world and offers perfect investment opportunities. The Indian government proceeded with the idea of “Rise of India” by allocating resources in the priority sectors. This economy growth is stimulated by the internal market and by the productivity gains in service and manufacturing industries.
Now India continues to face changes such as expansion of the middle class and thus the rise of purchasing power. As India today is the last major frontier for globalized retail, there are lots of transnational players who are interested in gaining control over business in this country. According to the latest signals from the government, it is possible that it will be allowed for global supermarket chains to enter Indian market. However, FDI inflows in the retail sector remains restricted. But there is dynamics toward easing the retail policy that started in 2006, in the single-brand retail in particular. Since then steady increase in FDI in retail sector is observed. Given the gigantic and fast-growing market, the demand in foreign investments in the retail is essential.
However, small retailers and farmers have concerns about the impact of these chain stores entering their territory because they will obviously lose in the competition. The dichotomy of the big corporations in India is in ambiguous impact they have on industry. They deals with unemployment creating job positions for many people at the same time leaving small entrepreneurs of food industry without a chance to earn for a living. But India has entered the process of globalization and it is obvious that it will open its territory for the largest corporations pretty soon.
In my opinion, India has enormous potential to rule the world in 21st century along with China. These countries due to their population may beat any records of production and consumption simultaneously. As Indian trade with the other world continues to grow and Indian corporation go on winning the world, it is pretty much obvious that it will ease the conditions for the foreign business to enter its territory on the basis of free competition.