With India’s enormous population of 1.3 billion people and highly skilled workforce, India is an attractive consumer market for companies intending to set up a business in India.
To improve the ease of doing business in India, the government has reduced restrictions on foreign direct investment (FDI). This positive change has led to considerable improvements in India’s ranking in the World Bank’s Ease of Doing Business Report, from being ranked 142nd in 2014 to 63rd place in 2020. FDI is also the primary driver of India’s economic growth, with a reported annual FDI inflow of USD 83.57 billion in the financial year 2021-22. The main invested sectors are the service sector, manufacturing sector and computer software and hardware sector.
Since India’s economic liberalisation in 1991, the economy that was once slow growing and poor is now one of the world’s top 10 largest economies, ranking in sixth place behind the US, China, Japan, Germany and UK, and is expected to be one of the top three economic powers in the world in the next 10 to 15 years.
India’s unicorns are valued at USD 330 billion, and the average growth rate of unicorns have overtaken the US and UK. There has been a progressive increase in the number of startups in India from three to four hundred in 2014 to 70,000 in 2022. India has also become the world’s third-largest startup ecosystem after the US and China.
GDP growth (2021)***