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Advantage India
India is a major hub for all businesses and consumer goods is the most emerging sectors in India. As a business hub India provides a better advantage of setting up business due to both federal policies and consumer markets. With increase in mobile factors of production the availability of labour is creating opportunities for Multi  nationals. Another advantage in India as a business destination the currency. The rise in currencies lead to higher productivity resulting in increased purchasing power.Another factor influencing the business atmosphere is the India's federal system of Government with clear line of powers within the state and the Central Governments.

Apart from these India provides a liberal, attractive, and investor friendly investment climate. India has the most liberal and transparent policies on foreign direct investment (FDI) among major economies of the world. India is among the top 10 FDI destinations.In addition to all this Government of India accords high priority to development of infrastructure in highways, ports, railways, airports, power, telecom..

Advantage India at a Glance


  • A stable Government with second stage reforms in place
  • Well established corporate ethics
  • Major tax reforms including implementation of VAT

Strengths : Indian FMCG Sector

  • Well-established distribution network extending to rural areas
  • Strong brands in the FMCG sector
  • Low cost operations


  • Large domestic market
  • Export potential
  • Increasing income levels will result in faster revenue growth

Returns and Investments

  • $130 billion-plus investment in infrastructure by year 2010
  • $ 10 billion FDI in infrastructure development and capital market by year 2008
  • Stock market rose by nearly 40 per cent in 2005; foreign investors are flooding in


  • India has the largest young population with over 890 million people below 45 years of age
  • 600 million-plus consumers by year 2010
  • 550 million-plus people under the age of 20 by year 2015
  • 70 million-plus people earn over Rs.8,00,000 ($18,000) a year - number to rise to 140 million by year 2011

Consumer Spending Pattern

  • In India the Total Consumer Spend was Rs.20,00,000 crore ($445 billion) in the year 2005
  • Size of Retail market Rs.10,50,000 crore ($233 billion);
  • Organised Retail sector is worth Rs.35,000 crore ($8 billion)
  • Leading retailers' sales growth (2005): 50-100%
  • India is the fourth largest economy in terms of purchasing power
  • A consumer market of 1.02 billion
  • A growing middle class of over 400 million with increasing purchasing power

FDI and Global Retailers

  • 51% FDI allowed in single brand retailing
  • FDI laws relatively liberal in wholesale trade
  • Metro AG and Shoprite already operational
  • More foreign retailers eyeing possibilities in wholesale
  • Tesco, Carrefour and Wal-Mart expected to operate soon
  • Woolworths (Dick Smith Electronics - durable retail arm) entering through a JV with the Tata conglomerate

Foreign Exchange Controls

  • Rupee is freely convertible on current account
  • Rupee is almost fully convertible on capital account for non-residents
  • For FDI- Profits earned, dividends and proceeds out of the sale of investments are fully repatriable
  • There are some restrictions for resident Indians on capital account on incomes earned in India

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