India is the largest democracy in the world. The country ranks second in the world in terms of total population. The liberalisation and globalisation of the Indian economy has led to more foreign direct investment (FDI) inflows in Indian markets. As a result, the scope for business in India has increased.
There are plenty of business opportunities in India for Foreign Investors, Non-Resident Indians (NRIs), Persons of Indian Origin (PIO) and Overseas Corporate Bodies (OCBs). The country offers liberal policy regime, along with easy availability of loans, funds and various other initiatives, which makes India a lucrative investment destination for NRIs and PIOs.
Some of the promising sectors where NRIs may invest include power, pharmaceuticals, mining, hotel & tourism, coal & ignites and other infrastructural projects. NRIs can also invest directly in Indian real estate except buying agricultural lands or plantations. They can look at huge number of central and state sponsored projects in key infrastructural sectors like education, healthcare and construction for higher returns.
Business Opportunities in India
Some of the major factors that help businesses in India to flourish include:
* High number of people with disposable income, emerging middle class, low cost competitive workforce, and investment friendly policies
* Availability of rich natural resources
* Availability of a considerable section of population proficient in English
* 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 enhance productivity in Industries
* Improved infrastructure for business ventures
Steps for NRIs /PIOs to start business in India
* Applying and getting PIO card (Person of Indian origin) – to make investments in properties, etc
* Getting permanent account number (PAN card) from the Indian tax department, making it smoother to undertake all business and investment transactions above Rs. 50,000
* Selecting a right and highly profitable business in India among various available options
* Selecting an experienced person/ business professional to plan business and investments
* Selecting a business partner in India and start a business
Investors can also take the help of business incubators and facilitators to become established and sustainable during their start-up phase. Business incubators are programs designed to nurture the development of entrepreneurial companies. They provide the companies with business support services, business advice, assistance with business planning, market and international networks, and also help in obtaining finance. Incubators usually offer companies rental space with flexible leases, basic office services and access to equipments all under one-roof. Successful completion of a business incubation program increases the chances of a start-up company to stay in business in India for long term.
To attract foreign investment into India, the Government is offering several facilities to NRIs, PIOs and OCBs. The economic reforms have brought policy changes in terms of ease of entry, investment, location, usage of technology, import and export. These changes have created an investment-friendly environment, which results in more business opportunities in India.
NRIs are permitted to open bank accounts in India with funds remitted from abroad, foreign exchange brought in from abroad or with funds legitimately due to them in India, with authorized dealer.
Further, the Reserve Bank of India (RBI) has granted general permission to NRIs/PIOs, for undertaking direct investments in Indian companies under the automatic route.