India is the largest democracy in the world. The country ranks second in the world in terms of total population. The liberalization and globalization of the Indian economy has led to more inflows of foreign direct investment (FDI) into the Indian markets. As a result, the scope of business in India has increased.
There are many business opportunities in India for foreign investors, Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Corporate Bodies (OCBs). The country offers a liberal policy regime, along with easy availability of loans, funds, and various other initiatives, making India a lucrative investment destination for NRIs and PIOs.
Some of the promising sectors where NRIs can invest include energy, pharmaceuticals, mining, hospitality and tourism, coal and fire and other infrastructure projects. NRIs can also directly invest in Indian real estate, except for the purchase of agricultural land or plantations. They may see a large number of state and central government sponsored projects in key infrastructure sectors such as education, healthcare and construction for higher returns.
Business opportunities in India
Some of the major factors that help businesses in India prosper include:
* High number of disposable income earners, emerging middle class, competitive low-cost workforce, and investment-friendly policies
* Availability of rich natural resources
* Availability to a significant portion of the English proficient population
* A well-established banking system consisting of public and private banks and other financial institutions
* Competitive advantage in information technology, which can be used to improve productivity in industries
* Improved infrastructure for commercial ventures
Steps for NRIs/PIOs to start business in India
* Applying for and obtaining PIO (Person of Indian Origin) card – for making property investments etc.
* Obtain a permanent account number (PAN card) from the Indian tax department, which makes it easy to carry out all business and investment transactions above Rs 50,000
* Select a suitable and highly profitable business in India from various available options
* Selection of an experienced person/business professional to plan business and investments
* Select a business partner in India and start a business
Investors can also get help from business incubators and facilitators to establish themselves and be sustainable during their start-up phase. Business incubators are programs designed to promote the development of entrepreneurial companies. They provide companies with business support services, business advice, business planning assistance, market and international networking, as well as help in obtaining financing. Incubators often offer companies rental space with flexible leases, basic office services, and access to equipment, all under one roof. Successful completion of a business incubator program increases the chances of a start-up to stay in business in India for the long term.
Government initiatives
To attract foreign investment to India, the Government provides various facilities to NRIs, PIOs and OCBs. Economic reforms have brought policy changes in terms of ease of entry, investment, location, use of technology, import and export. These changes have created a favorable environment for investment, resulting in more business opportunities in India.
NRIs can open bank accounts in India with funds remitted from abroad, foreign currency brought in from abroad or with funds rightfully owed to them in India, with an authorized dealer.
In addition, the Reserve Bank of India (RBI) has granted general permission to NRIs/PIOs to make direct investments in Indian companies under the automatic route.