A nation known as the “land of snake-charmers” never let its reputation stop it from being confident in its wide opportunities, talent pool, and knowledge base. The subcontinent with the second-largest labour force and the biggest proportion of multilingual citizens is on its way to become the global “Manufacturing centre.” India successfully seized the chances presented by global tribulations and upheavals. Everything is driving the lovely voyage forward—radical digitization, tax reforms, growth-friendly initiatives—and there doesn’t appear to be any turning back. Business-friendly regulations have levelled the playing field and started better things in motion. The shifting landscapes, growth factors, technological breakthroughs, and difficulties faced by investors across sectors are all covered in this research, which highlights “The New India.”

A 9000 year old civilization with a diverse range of goods and services. The country’s diverse population reflects the depth of its cultural legacy, which is a major economic driver. A nation that celebrates more than 50 festivals and 21 federal holidays places a strong emphasis on its rich cultural heritage. In this subcontinent, marketing is both difficult and appealing.

Certainly, there are numerous fresh changes emerging in New India that attract foreign investors. Continue reading to learn how the nation turns every challenge into an opportunity and establishes a foundation of constancy, endurance, devotion, and excellence.

Over the past few years, there has been a dramatic change in the Indian corporate environment.
Many MNCs in India are being drawn in by a number of government measures designed to make incorporations and subsidiaries easier.

A stable government, liberalisation of the FDI policy, incentives & subsidies offered by the Indian Government & reduced tax rates, digitization, and affordable labour are just a few of India’s advantages. SEZ zones for duty-free exports, good consumption due to the high population, and a stable government are others.

Which other continent offers as much potential for a vibrant market? None, unintentionally.

Why is India currently regarded as the most profitable country to do business in?

• On the start-up index, India is ranked third worldwide, and the government actively supports a large number of new businesses there.
• Companies are urged to produce in India thanks to the “Make in India” campaign.
• The government successfully enabled Ease of Doing Business through effective improvements, which has properly put the nation in the spotlight of the international business environment.
• The nation is now being led by a new government that has discovered fresh business growth opportunities. Many foreign businesses are now being encouraged to invest in India thanks to policy changes and the government’s willingness to foster beneficial knowledge exchange.
• Unintentionally, foreign direct investment (FDI) boosts a nation’s GDP. When a foreign company sets up shop in India, it brings with it money, the essential expertise, and cutting-edge technology. Also, there are several prospects for information exchange and employment for the Indian labour.
• To encourage manufacturing in India, Production Linked Incentive (PLI) programmes were introduced in March 2020. The Government approved an overall expenditure of INR 1970 billion (US$26.48 billion) (sanctioned over five years) for the 13 sectors listed below in November 2020.

1. Auto Components

2. Automobile  

3. Aviation

4. Chemicals

5. Electronic systems

6. Food Processing

7. Medical Devices

8. Metals and Mining

9. Pharmaceuticals

10. Renewable Energy

11. Telecom

12. Textiles & Apparel

13. White Goods

Statistics supporting India’s Ease of Doing Business

Foreign direct investment (FDI) equity inflows to India reached US$ 72.12 billion in 2020–21 (up until January 2021) and US$ 545.0 billion overall from April 2000 to January 2021, according to the Directorate for Promotion of Industry and Internal Trade (DPIIT).

The amount of FDI that has entered India this year is at a record high of $83.57 billion. Automobiles, services, and computer software and hardware are the top 3 industries drawing foreign investment.

India’s increase in FDI helped it move up the worldwide Ease of Doing Business (EoDB) rankings to Rank 63. This development gives underdeveloped nations a lot of comfort.

According to a CII and EY report, India anticipates attracting FDI worth US$ 120–160 billion year by 2025.

The main growth factors paving the road for a New India in the coming landscape

The way things have developed has been in stark contrast. This constructive development can be attributed to the preceding modifications to the rules and restrictions.

Let’s examine how the landscape is changing and how that affects India’s development.

As we can see, since 2014, FDI has been increasing steadily. In 2021–2022, foreign direct investment reached a new high of $83.57 billion.

The table below displays the FDI cap over time for various industries. As we can see, the increased FDI limitations are motivating foreign companies to boost their investment in certain industries. This influx has led to the sharing of knowledge and skills, improved relationships, and numerous job opportunities.

Year	2009	2022
Mining, oil and gas	100	100
Tele-communications	74	100
Insurance	26	74
Transportation	59.6	100
Media	63	26
Construction, Tourism & retail	83.7	100
Defence	26	74

The below is the data for Corporate Tax for Manufacturing companies over ten years. We can see a slash in the Corporate Tax to 25.17%. For new manufacturing companies, the Corporate tax rate is slashed to 17.16%.

Foreign investors will be encouraged to manufacture in India, raising revenue, by decreasing corporate tax and expanding the tax net. In South Asia and SouthEast Asia, the corporate tax rate is now the lowest.

More than 40% of the SEZs that were approved would shortly be functioning. Exports, development, and employment would all increase as a result of this action.

 

India was elevated due to its technical prowess, but it also benefited from recent bio-geo-political upheavals. Nevertheless, several crucial administrative actions have sped up this shift.

Digitization

 With the introduction of the idea of Digital India in 2015, revolutionary digitization in India began. This programme had as one of its goals enhancing India’s digital infrastructure and enabling everyone to be virtually connected. India has made great strides, from offering free data recharges to dominating 4G networks (now 5G). Governance & Services on Demand served as the secondary motivation.With the availability of payment gateways, business opportunities in India have grown tremendously. In India, the one window system for businesses comprises online application filing and fee payment. Without a successful digitization process, this idea would not have been feasible. Implementing a computerised central random inspection system assisted in reducing the amount of time required to complete regulations like license/certificate renewals. Ten states and 19 ministries/departments of the central government have already embraced this strategy. 

GST (goods & services Tax)

Prior to GST, the tax structure was convoluted and multi-layered. The introduction of GST on July 1st, 2017, changed the rules for indirect taxation. The following are a few advantages of GST:

• Fewer paperwork and document-related tasks
• Reduction of the tax uncertainty that scared off foreign investors
• Transparency of the entire indirect taxes ecosystem
• Elimination of unexplained transactions made on a product throughout its life cycle and at each point in its sales cycle

Supply Chain Disruption

Countries must become supply chain robust as a result of the significant geo-bio-political upheavals of recent years. The “number one factory” in the world, China, has lost its dominance, and India is expected to take over as the next likely supply chain leader. The recent and widespread effects of the Russian-Ukrainian war also compelled nations to put their own prohibitions on imports of Russian oil, gas, and gold. India came into attention as a result of this upheaval. The “Made in India” sector encourages businesses to produce in India.

The aforementioned elements have accelerated FDI inflows into India, dramatically increasing potential.

The PM Gati Shakti

PM Gati Shakti Programme is a significant step towards holistic development.

On October 13, 2021, the PM Gati Shakti will be launched, marking another significant date for India. The Prime Minister declared that India’s industry and exports anticipate rapid growth as a result of this gigantic 100 lakh billion investment. In order for local manufacturers to compete with their international rivals, this plan would raise their visibility internationally. The young people would have plenty of employment options as a result.

The seven engines stated below would be used by the PM Gati Shakti to develop multimodal connectivity infrastructure across various economic zones:

1. Roads 
2. Railways 
3. Ports 
4. Airports 
5. Waterways 
6. Logistics 
7. Infrastructure 
8. Mass Transport 

This plan was made possible thanks to the technical know-how of the Bhaskaracharya National Institute for Space Applications and Geoinformatics. This plan uses a dynamic Geographic Information System (GIS) platform with a digital master planning tool. The system monitors real-time information about infrastructure projects being carried out by sixteen Indian ministries and departments. The tracking requires obtaining base maps from Survey of India and satellite data from ISRO. With a shared vision, this approach would offer significant transparency in the conception, design, and planning of all ministries. Making India the major hub of numerous growth and opportunity opportunities is the goal.

India’s close relationship with EU nations

India has improved relations with EU nations over the past few years to allow for more frequent and extensive commerce and cultural contacts. Previous international gatherings have acted as beneficial catalysts for the development of these ties.

Since both nations renewed the Free Trade Agreement after a 9-year break, the strategic connections between India and the EU have grown even stronger this year. Resuming business negotiations between India and the European Union is of an unprecedented urgency. Due to the current geopolitical unrest, they were compelled to strengthen their trade links, which are advantageous for both nations.

In the following five years, it is anticipated that this agreement will increase trade between India and the EU by twofold. Both nations are dedicated to a peaceful and forward-moving relationship because they are both significant democracies.

Conclusion

India has already started on its path to become a significant industrial hub, the centre of the supply chain, and a top business location. For the past seven years, India has been on a continuous learning curve and is utilising each year to grow tremendously on a worldwide scale. The nation that formerly enticed travellers with its huge collection of spices and condiments is a key location for conducting important business. There is no turning back now that numerous reforms are assisting in transforming this nation into a prospective corporate hub. The government’s Made in India policy, which was introduced in 2014, has helped India experience exceptional growth in every area. It is understandable why India moved up the worldwide Ease of Doing Business (EoDB) rankings to 63rd place. With kind hospitality, a young workforce that is largely hungry for information, skill, and drive, and radical digitization, the environment is favourable for international enterprises to succeed here. The optimistic FDI numbers demonstrate the confidence that multinational corporations have, and the future seems more hopeful than ever. This value creation attitude is clear and laying a solid foundation for international organisations quickly.