INTRODUCTION

India has emerged as one of the most attractive

destination not only for investment but also for
doing business in the recent years. One of the
fastest growing economies in the world which has
not only sustained global downturn of 2008-09,
India is slated to grow at consistently higher rates
during next few decades.
India is likely to become one of the largest
economies of the world by the year 2025 as per
projections made by internationally renowned
consultants and IMF. Businesses around the world
do not like to miss the growth opportunities
offered by Indian markets and hence some of
them are already stepping up their investments

SOCIO ECONOMIC STRUCTURE

India has a large sized middle class, which is further expanding
substantially, offering a big fat market for foreign products and
services. In fact, if India continues its recent growth trend,
average household incomes will triple over the next two decades
and it will become the worlds fifth largest consumer economy by
the year 2025, according to a McKinsey report in 2010. The
consistent economic growth in India has been an important factor
that has contributed towards the decline in poverty.
Indias per capita income is estimated to be US$ 1223.45 in 201011, at current prices, which is higher by 17.9 percent from the per
capita income in 2009-10.
In just eleven years, from 1993-94 to 2004-2005 the percentage
of people below poverty line has declined from 36% to 28%,
according to a survey conducted by National Sample Survey
Organization (NSSO).

LOCATIONAL ADVANTAGES
Located in south Asia, India has its border countries as China,
Bhutan and Nepal on north-west side, Myanmar and Bangladesh
on East side and Afghanistan & Pakistan on its North-West side.
The great Himalaya Mountains divide India from rest of Asia in
its North side. Some of the emerging and established markets
such as Middle-East and South East countries are also closely
located.
Naturally connected via the sea route from the other three
sides, India is surrounded by Bay of Bengal, Arabian Sea and
Indian Ocean which facilitates most its overseas trade in all
directions.
Total area of the country is about 3.3 million square kilometers,
90% of which is land area. India is the seventh largest country in
the world in area. Indias coast line spreads over a length of
7,517 kilometers on three sides.

RESOURCES
Population and work force
Education and manpower resources
Material Resources

ENTRY OPTIONS FOR BUSINESS

IN INDIA
By setting up a non-corporate entity
By setting up a corporate entity

ENTRY AND INVESTMENT ROUTES

Foreigners can directly invest in India either on their own or as a joint venture,
with a few exceptions with regard to investment limits and sectors.
No government approval is required for FDI in virtually all sectors except a
small negative list formulated by government. Sector specific guidelines are
formulated by government giving sectoral investment caps if any.
If an investment does not qualify for automatic approval, FIPB considers the
proposal.
Use of foreign brands names/trademarks is permitted for sales in India.
Indian capital markets are open to FIIs and Indian companies are allowed to
raise funds from international capital markets
Foreign technology collaborations are allowed with agreements on
Technical knowhow fees
Payment for designs and drawings
Payment for engineering services
Other royalty payments
- NRIs can invest in shares and or convertible debentures of Indian companies
on a non-repatriable basis and these investments are not considered as FDI

BIBLIOGRAPHY

http://investindia.gov.in/