India's remarkable economic growth and potential have caught the attention of global investors and businesses. As one of the fastest-growing economies in the world, the country currently holds the rank of the sixth-largest economy globally and one of the most preferred destinations for doing business. The medium-term projections for future growth remain optimistic amidst global slump, highlighting the underlying strengths that make India a lucrative investment opportunity.

Guide to establishing presence in India 2023

Recognising the country’s investment potential, the government has been actively implementing initiatives to promote the ease of doing business. These initiatives span across multiple sectors and are designed to reduce complexities, enhance efficiency, and create a favourable business environment. Reforms such as a reduction in corporate tax rates, resolving insolvency, dealing with construction permits, investment facilitation, trading across borders, ‘Make in India’ and the Production Linked Incentive (PLI) scheme have been key enablers for business.

There have been other economic developments as well that have made India a prime investment destination. Over the years, the country’s financial markets have experienced significant growth in liquidity and depth, primarily driven by the dominance of banks in the sector. With the Reserve Bank of India (RBI) regulating the banking industry, reforms have been implemented to encourage the entry of new players and enhance market-driven efficiency and productivity.

In line with its commitment to business growth, the government has also set up the country’s first IFSC GIFT City in Gandhinagar, Gujarat. This state-of-the-art financial hub is designed to attract a wide range of financial institutions and market participants, including banks, Alternative Investment Funds, Foreign Portfolio Investors, clearing corporations, and stock exchanges.

By setting up the IFSC GIFT City, India has taken a big step towards creating a robust and competitive financial ecosystem that aligns with global standards. This initiative promotes economic growth and enhances the country's reputation as a global financial hub. India has also seen a surge in technology investments, making it one of the most promising markets for businesses around the world. This wave of investments is not only attracting global giants but also providing a fertile ground for start-ups to thrive. These investments are expected to create millions of job opportunities, fuel economic growth, and improve living standards for many Indians.

With a young workforce and a burgeoning middle class consumer base, the country offers immense opportunities across sectors such as manufacturing, technology, healthcare, and renewable energy.  By implementing measures to simplify processes, improve efficiency, and investing in infrastructure development and digitalisation, India is positioning itself as an as an attractive destination for businesses seeking growth opportunities in one of the world's fastest-growing economies.

GDP growth rate

GDP growth rate

Source: (Summary of economic survey)
*Provisional Estimate
**1st Advanced Estimates

India: What makes India a strong economy for investments?

Growing middle class
  • Rising purchasing power
  • Increased consumer demand
Abundant raw material
  • Vast resources for industries
  • Availability of diverse materials
Strong infrastructure
  • Extensive rail and road network
  • Efficient connectivity across the country
Young skilled workforce
  • Largest working population (age 25-45)
  • Adaptability to modern technologies
English-speaking manpower
  • Large pool of skilled English speakers
  • Effective communication with global partners
Competitive labour costs
  • Lower labour costs compared to non-Asian countries
  • Reduced manufacturing expenses
Strategic geographical location
  • Proximity to key markets like Middle East and South Asia
  • Access to diverse market opportunities

Vishesh C. Chandiok"The government’s strategic policy measures, such as the PLI scheme, rationalisation of tax rates in GST, and stabilisation of corporate tax rates, have made the country an attractive destination for investors."
Vishesh C. Chandiok, CEO, Grant Thornton Bharat

Raja LahiriIndia continues to be global hub for tech talent, top 3 global destinations for tech start-ups, and focus now is to create global hub for electronic manufacturing. Indian tech industry continues to witness robust growth and had crossed US$ 245B in FY23. With the Government’s focus on start-ups, innovation and manufacturing and deep tech talent, global tech majors and international investors continue to invest in Indian tech players. Further, as global tech is pivoting to newer tech areas like SaaS, cloud, cybersecurity, and generative AI, India will be at the forefront of innovation and the tech powerhouse for the world.
Raja Lahiri, Partner, Technology sector

Saket Mehra“India's automobile sector is poised for disruption, driven by sustainability, shared mobility, and connected vehicles. With an expected market value of USD 300 billion by 2026 and a significant contribution to India's GDP, it presents a compelling investment opportunity.”
Saket Mehra, Partner, Auto sector

Key statistics for FY 2022-23

Key statistics for FY 2022-23