5 reasons why US should expand business in India

"Discover 5 reasons for the US to expand their business in India. Explore growth opportunities in India's thriving market now"

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The Indian economy has flourished over the past decade, with remarkable statistics illustrating its upward trajectory. According to RBI data, Q1 of FY24-25 anticipates a robust GDP growth of 6.7%, emphasizing India's ascent towards its ambitious goal of becoming a US$ 5 trillion economy by FY26-27. a significant reduction in India's current account deficit (CAD) to 1.9% of GDP in 2023, with projections aiming for further decline this fiscal year. Notably, India's foreign exchange reserves surged to US$568 billion in 2023, boosting its economic growth and elevating bilateral trade with the US to a global strategic partnership.

Prime Minister Narendra Modi's recent visit to the US further cemented the Indo-Pacific alignment, as he outlined collaborative initiatives during a joint session of the US Congress. Key announcements in this India-US partnership spanned telecommunications, technology, semiconductor industry, defense partnership, and space exploration highlighting the depth of India-US cooperation. For instance, Micron Technology's pledge of $2.75 billion investment over five years to train 60,000 Indian engineers signifies a pivotal stride towards fostering technological expertise and innovation within India.

As US businesses seek to channel global competitiveness and expand their market reach, India emerges as an ideal destination, boasting the world's fastest-growing economy and a rising . Leveraging India's vast market potential and booming workforce, US companies can explore various entry avenues, from licensing and joint ventures to franchising for doing business in India. Alternatively, establishing a remote team in India offers a strategic approach to market penetration, facilitated by an employer of record (EOR) to streamline recruitment and onboarding processes while enabling businesses to focus on core operations.

What is the trade relationship between the US and India?

India's prowess in global trade is remarkable. With strategic free trade agreements inked with ASEAN countries and South Korea, and ongoing negotiations with key players like Australia, the EU, New Zealand, MERCOSUR, and South Africa, India's economic footprint is expanding rapidly. Notably, substantial tariff reductions on Indian exports have catalyzed this growth. The trajectory of the India-US trade relationship mirrors a rapid rise in recent years. Corporate giants such as Google and Amazon have pledged significant investments across various sectors in India,

capitalizing on the nation's digitization drive. Google's staggering commitment of US$ 10 billion to India's digitization fund, alongside Amazon's pledge to double its investments to US$ 15 billion by 2030, and Amazon Web Services' planned investment of US$ 12.7 billion, symbolizes a new era of economic collaboration and job creation, projected to generate over 130,000 employment opportunities and increased business in India.

Beyond economic growth, the vibrant Indian diaspora in the US, comprising , strengthens bilateral ties and fosters a productive environment for collaborative ventures and job creation between India-US.

Moreover, industry biggies like Adobe Inc., Apple, HP, IBM, and J.P. Morgan, among others, have established themselves in the Indian market for over two decades, with plans to expand further into tier 2 and tier 3 cities. This dynamic landscape announces India's emergence as a prime destination for global investment and marks its pivotal role in the evolving global economic growth.

What business is in high demand in India?

Over the past two decades, numerous industries in India have witnessed a surge in demand, fueled by a multitude of factors such as robust economic growth, evolving consumer preferences, and rapid technological advancements. Among the sectors poised for substantial growth and demand in India are: